Reserving Challenges for ILS Funds
We look at some of the major losses that have occurred since 2017 and why they have proved challenging to set reserves for, creating heightened uncertainty in the valuations of ILS funds.
Over the last decade, alternative asset classes have drawn significant attention among life insurance and pension companies as part of their strategic asset holdings, in addition to traditional investments such as government and corporate bonds or equities. In this context, this paper explores:
Alternative asset classes: Why and what to model, and considerations for risk management
Challenges for companies in the alternative asset space include building an internal model and accounting for regulatory treatment for capital set aside.