For the insurance-linked securities (ILS) market, one of the most promising findings of Moody’s Ratings annual survey of reinsurance buyers is that 28% of respondents said they anticipate increased use of alternative capital sources in 2027.
At a time when the ILS market has grown strongly and catastrophe bond issuance has soared, while the routes to access differentiated capital sources are proliferating and diversifying in themselves, this is a particularly strong signal for 2027.
It might imply buyers see significant value in alternative capital at this stage of the cycle, in allowing them to lock-in mostly longer-duration reinsurance and retrocession covers in structured formats.
FULL ORIGINAL PUBLICATION HERE