HVRRF - Trapped ILS Capital COVID Issues Largely Postponed Beyond Renewal

• Issues related to the potential for insurance-linked securities (ILS) collateral to be trapped, because of uncertainty over the COVID-19 pandemic and its potential losses for the insurance and reinsurance industry, have largely been postponed until after the January renewals.
• This had been assumed likely to come to a head around the negotiations for the January 2021 renewals, but we're told that many opted to get the reinsurance and retrocession renewals completed and come back to this issue afterwards.
• While the issues related to possible trapped ILS capital due to COVID-19 seem to have been largely postponed, allowing for a more orderly renewal, they certainly haven't gone away.

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