ILS value is influenced by an insured loss event underlying the security. This securitization model was born of efforts by the insurance industry to develop an additional source of insurance and reinsurance capacity by transferring traditionally insurable risks to the capital markets. As the ILS market has developed, it has provided an alternative source of risk capital, most often for property catastrophe risks such as windstorm and earthquake. The ILS market has also been employed for life insurance exposures such as mortality and longevity risk.