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
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.