Collins is a leading broker of industry loss warranties (ILWs), acting as the intermediary facilitating the buying and selling of these contracts to provide creative and innovative solutions to the reinsurance capacity needs of our clients. Through Collins' strong and long term relationships with leading global reinsurers, as well as hedge funds and other institutions in capital markets internationally, our ILW practice - with brokers in New York, London and Bermuda - provides a dedicated team offering reliable and professional service to ILW clients.

The ILW market has steadily grown over the past 20 years, but expanded significantly after the 2004 and 2005 wind seasons. Most of the world's reinsurers are involved in some way in the ILW market, and Collins works with both buyers and sellers. Collins is committed as a long-term participant in this important product.

Industry loss warranties can fill shortfalls in traditional reinsurance programs. ILW contracts are simple to understand, structure, underwrite, price and administer.
ILWs are underwritten and priced based on the experience of the insurance industry as whole; the client's underwriting information is not required. The coverage is clear; if a loss may trigger payment under the contract, it's soon evident to both the buyer and the seller. In addition to protecting property portfolios, an ILW contract can be designed to cover aviation, terrorism or workers' compensation exposures in event of a catastrophic event.

Collins is licensed to use Property Claim Services (PCS) data as an index in all industry loss warranties purchased from Collins. Our access to this and several other databases enables us to estimate the probability of a loss accurately and structure ILW covers appropriately.

Click on this article from Best's Review on the increasing importance of industry loss warranties to insurers and reinsurers.