ILS rates likely to rise up to 20% at renewals

Posted On: Jan. 1, 2019 7:37 AM CST

U.S.-based consultancy firm Lane Financial L.L.C. said that insurance-linked securities' rates are likely to increase by up to 20% at the January 2019 renewals driven by catastrophe related losses in 2017 and 2018, Artemis.bm reports. Analysts at Lane Financial said that the rates are likely to rise based on ILS and catastrophe bond market pricing in the mid of December. The rates may remain unchanged after the rate hikes as new capital is unlikely flow into the market as it did in 2017, the analysts added.