ILS, Cat Bond & Post Hurricane Ian Reinsurance Market Update Q1 2023
The property catastrophe bond market supported new and repeat insurance, reinsurance and government sponsors
ILS Funds
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An investor in ILS funds 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.
Funds invest in insurance-linked securities for several reasons, including diversification, higher returns, the opportunity to invest in the insurance industry and benefit from the transfer of catastrophic risks, and reduced correlation to traditional asset classes.
At $10.5 bn, cat bond and ILS issuance was not a record year, but was still above the decade average of roughly $9.7 bn.
In this section, we have collected the most current articles and reviews on the topic of the ILS Funds.
Global Economy & New Drivers of Re/Insurance Sector Growth
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 The war in Ukraine has superseded COVID-19 as the dominant economic driver, even as China continues to grapple
How ILS Can Support Additional Re/Insurance Capacity for Cyber Risk
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 & Cat Bonds Have Seen Little Signs of New Capital Entering in 2023
ILS and collateralized markets have seen little signs of new capital entering, but lower estimates helped to provide additional liquidity for retrocession
Catastrophe Bond & ILS Market Review by Artemis
According to Artemis, catastrophe bond and related insurance-linked securities (ILS) in Q4 2022 issuance fell when compared with the prior year quarter
Average Losses of Higher-Risk Focused ILS Funds Increased After Hurricane Ian
Higher-risk focused insurance-linked securities (ILS) fund strategies appear to be averaging losses around the 17% mark after hurricane Ian
ILS Market Cyber Insurance Survey. 6 Questions for ILS Funds
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)
