ILS are linked to Efficient Markets
Most misguided ideas about the ILS market are ultimately based on the notion that re/insurance markets are inefficient, but this could not be farther from the truth. The centuries old re/insurance market is as efficient as any traditional market like the global equities or bond markets. This does not mean there is not a role for active management. Just the opposite is true as re/insurance markets are not regulated in such a way as to protect investors, so investors must protect themselves.