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
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.
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
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
2024 Reinsurance Renewals Come Amid Growing Reinsurer Appetite
The mid-year reinsurance renewals occurred against a continued increase in reinsurer appetite as overall reinsurance capacity grew
Re/Insurance Underwriting Results. Drivers of Natural Catastrophe Loss Growth
Property reinsurance rates rose significantly at the renewals. The losses from Hurricane Ian last year were a contributory factor
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
Reinsurance Market Dynamics: Lessons of a Hard Market & Future Capital Flows
The most challenging January 1 renewal in a generation as the reinsurance market underwent a fundamental shift in pricing and risk appetite
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
M&A Transactions in the Global Reinsurance Sector will be Limited
M&A transactions in the global reinsurance sector will be limited into 2023 amid investor concerns over macroeconomic risks and heightened catastrophe losses
Sovereign Green & Catastrophe Bond Overview: Debt Instruments for Insurers
Catastrophe and green bonds in the private sector have become the most prominent innovations in the field of sustainable finance in the last 15 years
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
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
U.S. cyber insurance renewal premium rates in 2025 have declined year over year for the past three quarters and are expected to remain under pressure
Global insured losses from natural disaster events in Q1 2025 were preliminarily estimated to reach at least $53 bn, the highest Q1 insured losses since Q1 2011 ($81 bn)