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ILS investors see risk models as inaccurate on inflation

Posted On: Jan. 4, 2023 9:42 AM CST


U.S.-based advisor Gallagher Securities Inc. said that insurance-linked securities investors are more concerned about the potential for catastrophe risk models to be inaccurate about inflation than on climate change, Artemis reported. The loading of pricing to account for inflation can be particularly challenging as inflation can be volatile and it’s easy to overshoot estimates.