Industry loss warranty (ILW) rates-on-line soften from highs

The industry loss warranty (ILW) market has softened somewhat, seemingly in-line with the catastrophe bond market, with what were record high ILW rates-on-line now coming in on average roughly 12% lower for the second-quarter of 2022, according to our sources.

We’ve updated our industry-loss warranty (ILW) pricing data set using insights gathered from a range of our market sources.

As before, we’ve projected out into the second-quarter of 2023 what the potential rates-on-line (RoL’s) could be for certain fixed industry-loss attachment points for protection buyers over the coming weeks.

Of course, the reinsurance market is particularly dynamic right now and the catastrophe bond segment has provided clear evidence of the modicum of softening now being seen, as new cat bonds settle at upsized volumes and with lower pricing than guidance.

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