Bermuda (Re)Insurers Face Margin Pressure but Maintain Strong Returns in 2025
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts
ILS Market
ILS Market 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.
The market for insurance-linked securities emerged in the mid-1990’s as a mechanism for insurance and reinsurance companies to access the deepest and most liquid pool of capital available, the global capital markets.
Now an established alternative asset class, insurance-linked securities (ILS) are typically invested in by large institutional investors such as pension funds, sovereign wealth funds, multi-asset investment firms and funds, endowments, as well as some family office investors.
ILS strategies typically invest in one or more insurance-linked instruments, including but not limited to securities (e.g. cat bonds), private reinsurance transactions with insurance and reinsurance companies (ILS private transactions) or portfolios of reinsurance contracts (e.g. quota shares).
In this section, we have collected the most current articles and reviews on the topic of the ILS Market.
Insurance-Linked Securities Market in 2025 Hits New Record as Investor Interest Grows
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
Global Natural Catastrophe Overview: Economic & Insured Losses for 2024 FY
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
APRA’s Proposed Reinsurance Reforms: Impact on Australian Insurers’ Credit Profiles
Changes to reinsurance-related capital requirements proposed by the Australian Prudential Regulation Authority strengthen Australian general insurers’ credit profiles
ILS & Catastrophe Bond Market Expands with Record Issuances & Cyber Risk Inclusion
Catastrophe bond issuance set records in three of the past four quarters, pushing the market to $45.6 bn—an 18% rise
ILS Market & Alternative Reinsurance Capital: Poised for Continued Growth
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
2024 Global Reinsurer Traditional Capital: Capacity at Peak Levels
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
ILS, Cat Bond & Post Hurricane Ian Reinsurance Market Update
The property catastrophe bond market supported new and repeat insurance, reinsurance and government sponsors
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
ILS and collateralized markets have seen little signs of new capital entering, but lower estimates helped to provide additional liquidity for retrocession
Reinsurance Potential for Cyber Risk Transference through ILS Issuances
Public announce of cyber risk transference by (re)insurers to capital markets through ILS issuances represent the potential for a reinsurance
Catastrophe Bond & ILS Market Review by Artemis
According to Artemis, catastrophe bond and related insurance-linked securities (ILS) 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
Investors in Insurance-Linked Securities (ILS) Are Seeking Innovation and Improve Disaster Relief
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
Parametric Catastrophe Bonds and Alternate Risk Transfer Mechanisms for China’s Market
Even as countries across the globe grapple with climate change, alternate risk transfer mechanisms like parametric solutions are emerging as the best option
Global Insurance-Linked Securities Market Outlook
Global Insurance-Linked Securities (ILS) market ended another year on a high note as the annual new issuance record was broken once again
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)
Cyber Insurance Linked Securities: Acute ILS Demand Could Drive a Retrocession Market
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
Directors and officers face rising legal and regulatory risks from AI adoption, cyber threats, and evolving privacy laws across the Asia Pacific region
Severe weather in Kentucky drives up insurance rates, strains carriers, and prompts regulatory changes as tornadoes and hailstorms increase in frequency and cost
California’s Insurance Market: The Case for Risk-Based Pricing and Data-Driven Mitigatio. California’s insurance availability/affordability challenges
Life reinsurers based in Bermuda have recorded increased activity as annuity sales rise in the U.S. and recent regulatory changes