Jason Bolding, CEO of Gallagher Securities, has stated that the focus for reinsurance professionals has shifted from whether to engage with insurance-linked securities (ILS) and non-traditional capital to how to effectively integrate these sources into capital models. This reflects a growing recognition of ILS as a vital component in achieving strategic goals.
Bolding emphasized that the integration of ILS and non-traditional capital is now viewed as a critical extension of traditional reinsurance. The industry is moving towards a more strategic approach, where the emphasis lies on identifying methods to incorporate these alternative capital sources into existing frameworks. This shift indicates a broader acceptance of ILS as a necessary tool for reinsurance professionals aiming to meet their medium to long-term objectives.
The evolving landscape of reinsurance necessitates that companies adapt their capital models to leverage the benefits of ILS. As the market continues to develop, understanding the role of non-traditional capital will be essential for firms looking to enhance their resilience and competitiveness in the industry.
Key Takeaways
Based on reporting by Artemis. All facts sourced from the original article.