A specialist, technically rigorous approach to Industry Loss Warranties.
- Industry Loss Warranties, known as ILWs, are a type of insurance-linked security
- They provide protection against the losses that catastrophic events, such as hurricanes or earthquakes, cause across the insurance industry as a whole
- An ILW responds to an industry-wide measure of loss, reported by an independent index, rather than to the losses suffered by a single policyholder
- This removes much of the imbalance of information that can exist between the buyer and the seller of cover, and allows each contract to be defined clearly by territory and by peril
- ILWs have existed since the 1980s and grew significantly following the market dislocation that followed major hurricane losses in the 1990s
THI originates, evaluates and manages ILW transactions across a range of territories and perils. Our proprietary analytical tools support the underwriting judgement of our team at every stage, from the initial assessment of a risk through to the ongoing management of a portfolio.