Lewis Lee | Source | CEO and Global Head of Intellectual Property Solutions at Aon

At a high level, intellectual property (IP) financing is indeed an interesting opportunity for ILS funds because of the potential insurance yield on these deals. Given that IP-intensive companies only default at a 4 percent rate on average (Mann Study), and the loan is over-collateralized by the value of the IP assets, most of the ILS industry view this as a compelling risk-adjusted return.