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Insurance-Linked Securities

Insurance-linked securities (ILS) are investment assets generally thought to have little to no correlation with the wider financial markets as their value is linked to insurance-related, non-financial risks such as natural disasters, other insurable specialty risks and life and health insurance risks including mortality or longevity.

As securities, some insurance-linked securities (mainly catastrophe bonds) can be and are traded among investors and on the secondary-market.

They allow insurance and reinsurance carriers to transfer risk to the capital markets and raise capital or capacity. They also allow life insurers to release the value in their policies by packaging them up and issuing them as asset-backed notes.

In this section, we have collected the most current articles and reviews on the topic of the Insurance-Linked Securities.