Asia is expected to see a steady and continuing increase in insurance-linked securities (ILS) activity, with regionally tailored catastrophe bonds likely to become more of a feature, as heightened climate awareness drives a need for risk transfer and reinsurance, Fitch Ratings has said.
2025 has not seen a particularly significant amount of Asian risk ceded in catastrophe bond form, but deal-flow has continued and rating agency Fitch expects this flow will persist and perhaps grow over time.
Which would be welcomed by cat bond and ILS fund managers and investors, as the portfolio diversification offered by non-US cat bonds can be very attractive.
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