ILS Capital aims to bring something new to investors in reinsurance and catastrophe risk, by including specialty reinsurance investments.
Insurance-linked securities are products of the rapid development of financial innovation and the convergence of the insurance industry and the capital markets. The securitization model has been employed by insurers eager to transfer risk and use new sources of capital market funding.
An investor in ILS will receive interest payments, paid out of the insurance risk premium plus a money market return. As such the return is mainly determined by the insurance risk assumed.
As well as forming part of the spectrum of pure reinsurance risk transfer tools available to the global insurance market, insurance-linked securities (ILS) are also used by some large corporates to access insurance capacity from the capital markets, as well as by governments to secure disaster risk financing.
In this section, we have collected the most current articles and reviews on the topic of the ILS Capital.
Changes to reinsurance-related capital requirements proposed by the Australian Prudential Regulation Authority strengthen Australian general insurers’ credit profiles
ILS market remains a significant capital source for reinsurers in 2024. Alternative capital estemated at $110 bn, with the catastrophe bond market growing to $45 bn
In 2024, global reinsurer capital, including both alternative and traditional sources, has reached peak levels. Reinsurer capital stood at $695 bn as of mid-2024, marking a $25 bn increase
Insurance-Linked Securities Overview. Insurers and reinsurers leveraged alternative capital in 2023 more than any year in the history of the (re)insurance market
AM Best has released the Market Segment Outlook: Global Reinsurance report on the outlook for global non-life reinsurance, maintaining a stable view
The property catastrophe bond market supported new and repeat insurance, reinsurance and government sponsors
The global economy is in a precarious position. The war in Ukraine has superseded COVID-19 as the dominant economic driver, even as China continues to grapple
ILS plays a key role in allowing catastrophe risk to be transferred from the commercial insurance market to investors, providing additional (re)insurance capacity
ILS and collateralized markets have seen little signs of new capital entering, but lower estimates helped to provide additional liquidity for retrocession
Public announce of cyber risk transference by (re)insurers to capital markets through ILS issuances represent the potential for a reinsurance
According to Artemis, catastrophe bond and related insurance-linked securities (ILS) issuance fell when compared with the prior year quarter
Higher-risk focused insurance-linked securities (ILS) fund strategies appear to be averaging losses around the 17% mark after hurricane Ian
Investors in ILS are seeking innovation—they may find it in Africa where a combination of transnational bodies, better data and a desire to structure improved disaster relief
Global Insurance-Linked Securities (ILS) market ended another year on a high note as the annual new issuance record was broken once again
The increased use of new forms of risk transfer in the cyber reinsurance market to have renewed discussions about the potential role Insurance-Linked Securities (ILS)
Increasing demand for cyber re/insurance have made the need for fresh risk capital acute. With insurance linked securities (ILS) market, re/insurers may be change
