Specific Types of ILWs
Live Cat contracts are ILW contracts traded while an event is in progress—usually a hurricane approaching land.
Dead Cat contracts are traded on an event that had already occurred, but for which the total amount of industry loss is not yet known. Some market participants refer to contracts against perils which are out of season (for example, hurricane contracts outside of hurricane season) as dead cats.
Back-up Covers provide protection for events that occur following the occurrence of a catastrophe.
Read more about this topic: Industry Loss Warranty
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