Tullett Prebon, part of TP ICAP Group, the world’s largest interdealer broker, has announced the launch of its Insurance Linked Notes (ILN) platform – a new issuance and trading platform initially featuring catastrophe industry-loss instruments that will be fully-securitised
The company cites record levels of cat bond issuance and other Insurance-Linked Securities as a driver for the decision.
The new platform helps users make trading decisions based on market-acknowledged risk data. Real-time analytics enable buyers and sellers to instantly evaluate the risk based on factors including the region coverage and the type of catastrophe.
The ILNs are fully-collateralised, securitised and tradable insurance or reinsurance-linked notes, enabling the trading of and investing in catastrophe risks.
“None of us know precisely when a catastrophe will strike, or its impact,” said Steve Emmerson, Head of ILS at Tullett Prebon.
“However, it is now possible to forecast probabilities based on historical trends, risk exposure data and real-time analytics.”
The new initiative will be run by Tullett Prebon’s ILS Desk, which was formed in 2008 and has become the leading interdealer broker in catastrophe bond secondary trading worldwide; the ILS desk will host regular auctions for buyers and sellers to trade ILNs.
”The ILN platform from Tullett Prebon introduces a unique combination of tools under one roof enabling approved counterparties to design, analyse and trade in catastrophe risk,” added Emmerson.
