Investors might exit ILS market following third catastrophe loss year

Michael Millette, managing partner at U.S.-based asset manager Hudson Structured Capital Management Ltd., said that a third year of sizable catastrophe losses could result in insurance-linked securities investors exiting the market, Artemis reports. Another catastrophe loss year could "change the capital market mechanism," as the ability of capital to move quickly into and out of the ILS market has fundamentally altered the traditional reinsurance cycle.

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