How Corporate Treasurers Are Using ILS To Reduce Earnings Risk And Protect Capital
benzinga_article·- Corporate treasurers utilize insurance-linked securities (ILS) to manage low-probability losses from risks like natural disasters and cyber incidents. - ILS allow for tailored risk transfer, offering non-correlated capital and cost efficiency, which helps stabilize earnings and protects balance-sheet capital. - Despite potential risks such as basis risk and liquidity issues, ILS have become essential for treasurers, especially with growing market demand and capacity for tailored protection.