Asia’s ILS Market Needs Investor Familiarity Before Real Scale Arrives
Singapore expands ILS grants as Asia’s cat bond market grows, but investor education, capacity gaps and regulatory momentum still shape the asset class
“ILS Market Review” from Beinsure offers a detailed analysis of the insurance-linked securities market. This review covers key developments, trends, and performance metrics within the sector. It examines how ILS products, such as catastrophe bonds and collateralized reinsurance, are influencing the broader insurance and reinsurance markets.
The review provides insights into market dynamics, including supply and demand, pricing trends, and investor behavior. Additionally, it highlights significant transactions and regulatory changes affecting the ILS landscape. The aim is to inform stakeholders, including insurers, investors, and analysts, about current conditions and future outlooks in the ILS market.
Singapore expands ILS grants as Asia’s cat bond market grows, but investor education, capacity gaps and regulatory momentum still shape the asset class
H1 2025 has reinforced Insurance-Linked Securities as one of the most resilient corners of the capital markets. Notional issuance has already topped $17bn across 60 deals
UK’s proposed reforms to insurance risk transformation and captive insurance will not affect the credit quality of London market insurers ahead of the 2027 implementation
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts
The insurance-linked securities (ILS) market hit $107 bn in capacity by the end of 2024, driven by strong investor returns and increased catastrophe bond issuance
In 2024, global natural perils resulted in total direct economic costs of $417 bn. Of this, $154 bn was covered by private insurers and public insurance entities
Changes to reinsurance-related capital requirements proposed by the Australian Prudential Regulation Authority strengthen Australian general insurers’ credit profiles
Catastrophe bond issuance set records in three of the past four quarters, pushing the market to $45.6 bn—an 18% rise
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
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
According to Artemis, catastrophe bond and related insurance-linked securities (ILS) issuance fell when compared with the prior year quarter
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