The catastrophe bond and insurance-linked securities (ILS) market has a “meaningful growth opportunity” ahead of it, with a near doubling of the ILS market to as much as $200 billion in capital possible by the year 2032, according to analysts at investment bank Jefferies.
The analysts say that the rebound in issuance and expansion of the catastrophe bond market is expected to broaden out to other ILS vehicles, such as collateralized reinsurance and sidecar opportunities, in 2025.
Believing that the ILS market has “runway to double the ~$100bn mkt by ’32.”
ILS investor appetite is expected to rebound near-term, thanks to the higher returns experienced since the more challenged period where catastrophe losses and soft market pricing and terms dented performance.
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