Moody’s Deploys ILS Analytics as EPIC’s $13.5B M&A Drive Continues
By The Reinsurance Daily Editorial ·
Moody’s Deploys ILS Analytics as EPIC’s $13.5B M&A Drive Continues
Moody’s Launches Risk InvestorIQ for ILS Market
Moody's has launched Risk InvestorIQ, a new platform designed to provide institutional investors with advanced analytics for the Insurance-Linked Securities (ILS) market. The tool aims to enhance transparency and risk assessment for transactions and portfolios within the asset class. The launch comes as the total outstanding ILS market stands at approximately $65.6 billion, with new issuance in the first half of 2026 reaching a robust $18 billion. The platform is expected to address the growing demand from capital allocators for more sophisticated modelling capabilities, moving beyond traditional catastrophe bond analytics to offer portfolio construction and stress-testing functionalities. For reinsurers, the proliferation of such tools signals that ILS investors will arrive at negotiations with more granular, data-driven return hurdles and risk-adjusted pricing expectations, potentially increasing competition on well-modelled perils.
Moody’s data indicates the ILS market processed $18 billion in new issuance during H1 2026, underpinning the need for enhanced analytical tools to support capital allocation.
US Federal Legislation Targets Auto Insurance Fraud with Steep Penalties
New federal legislation is advancing to combat organized auto insurance fraud through the imposition of severe financial penalties. The bill introduces fines of up to $186,000 per staged accident, a significant increase aimed at deterring the complex fraud rings that have become prevalent in several states. This legislative action is a direct response to data indicating a 58% year-over-year increase in suspected fraudulent claims activity submitted to national databases. For P&C carriers, this represents a potential long-term reduction in loss costs for personal and commercial auto lines. Reinsurers should anticipate that cedents will cite the bill's deterrent effect during upcoming treaty negotiations, potentially arguing for reduced loss picks or improved cession terms on auto-exposed quota share and excess-of-loss programs, particularly those covering portfolios in high-fraud regions.
EPIC Continues National Expansion with Korotkin Insurance Group Acquisition
EPIC Insurance Brokers & Consultants has acquired Michigan-based Korotkin Insurance Group, further expanding its footprint in the Midwest. The terms of the deal were not disclosed. Korotkin brings a specialized focus on property/casualty and private client services. This acquisition is consistent with EPIC's aggressive M&A strategy, which has built the firm into a major national broker with over $13.5 billion in annual premiums placed. The addition of Korotkin's team of 160 professionals enhances EPIC's regional expertise and client service capabilities. For reinsurers, the ongoing consolidation among major brokers like EPIC concentrates premium volume and negotiating power, creating pressure to offer competitive terms and capacity to a smaller number of highly sophisticated, data-rich intermediaries.
Key Takeaways
- The new federal auto fraud legislation, with penalties up to $186,000 per violation, requires immediate review of claims handling protocols and potential adjustments to loss picks for personal auto treaties.
- Moody's Risk InvestorIQ launch signals a demand for more granular analytics, a need amplified by broker consolidation as seen with EPIC's recent acquisition. Acquirers must now quantify disparate risk portfolios at a scale that legacy tools cannot support.
- With Moody's data suggesting H1 2026 ILS issuance reached $18 billion, cedents should pressure brokers to model pricing against a broader set of alternative capital benchmarks, not just traditional reinsurance pricing.
- The concurrent push for advanced analytics (Moody’s) and legislative controls on fraud (Auto Bill) indicates a market-wide intolerance for unquantified risk and poor loss performance. Portfolios lacking granular data will face significant pricing pressure at renewal.
Sources
Moody’s launches Risk InvestorIQ to support ILS transaction and portfolio evaluation — artemis.bm
Federal Legislation Targets Auto Insurance Fraud With Steep Penalties — insurancejournal.com
EPIC Acquires Michigan’s Korotkin Insurance Group — insurancejournal.com