Insurance-linked securities market hits US$70b in 2015: Willis

JAN 19, 201611:10 PM

[LONDON] The market for non-life insurance-linked securities (ILS) rose to US$70 billion from US$65 billion in 2015, Willis Capital Markets & Advisory said on Tuesday, as more investors pumped money into the market in a hunt for yield.

ILS allow insurance risk to be shared with a broader range of investors than traditional reinsurance and can take the form of a range of securities including catastrophe bonds.

Among the ILS products proving popular were collateralised reinsurance, Willis said, and a broader array of risks were offered for investment, including accident & health and casualty risks.

"As investors continue (to) become more comfortable with this maturing asset class, there remains clear appetite to deploy capital across a broader array of risks and products as long as investment standards are met," said Bill Dubinsky, head of ILS at WCMA.

"Overall...the ILS market is healthy and of keen interest to institutional investors, insurers and reinsurers, and increasingly to corporates and governments as well."

REUTERS