Alan Levin, Vice Chair of Locke Lord and Partner in the Hartford and New York offices, commented in Intelligent Insurer’s PCI Today on the potential opportunity in both standard reinsurance and insurance-linked securities (ILS) markets to step up and provide reassurance to the primary insurance industry in the wake of catastrophic flooding and damage due to hurricanes Harvey, Irma, Maria and Nate. Levin added that the ILS market is likely to continue to grow and expand to meet the demand of investors and the market for cover.
Levin noted: “One of the things we’re seeing after these cat events is that a minimal percentage of people had flood insurance. The question is whether we can develop an alternative market on the primary side that can offer coverage at a proper rate and get people to take it up. That lack of coverage adds a huge financial burden to communities and to people’s lives, when they have no flood cover and most of the damage was from flooding.”
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