In the current market environment, cedents choosing to sponsor catastrophe bonds can benefit from more favourable economics than with traditional reinsurance covers in some risk layers, rating agency AM Best has said. AM Best has published a detailed new report on catastrophe bonds and insurance-linked securities (ILS), describing the ILS
For insurance and reinsurance companies, the expansion of insurance-linked securities and the catastrophe bond market are viewed as credit positive by KBRA, with the rating agency explaining that the additional capacity the ILS market offers is increasingly important, supporting capital flexibility and protecting sector balance-sheets. Increasing volumes of catastrophe bond
In announcing its results this morning, Adrian Cox, the CEO of Beazley, the London headquartered specialty insurance and reinsurance company, has stated that, when it comes to cyber insurance-linked securities the firm’s next step is to transition into securitisation and transformation of risks, with its dedicated cyber ILS fund planned
As the catastrophe bond market continues to expand into new perils and more complex structures, broad and credible modelling coverage becomes highly important. However, reinsurer Swiss Re’s proprietary catastrophe models allow the firm to analyse a wider range of risks, which according to executives expands the “investable universe” while maintaining
The Association for Financial Markets in Europe (AFME) has published its response to the European Commission’s Climate Resilience Framework, calling for the use of insurance-linked securities (ILS) and catastrophe bonds as an effective way that insurers within the Union can access new capital to back climate-related policies. AFME is the
The main four parametric natural disaster insurance risk pools have committed to a unique collaboration, which will see them explore the creation of a joint risk finance and reinsurance platform. This initiative, aimed at expanding global climate risk protection, brought together representatives from African Risk Capacity Ltd. (ARC), CCRIF SPC,
Hong Kong’s Secretary for Financial Services and the Treasury Christopher Hui explained today that the government aims to enhance its preferential tax regime and extend the eligible asset classes for tax exemptions to include insurance-linked securities (ILS), such as catastrophe bonds. The goal is to enhance competitiveness of its financial
The insurance-linked securities (ILS) market has entered 2026 with significant momentum, driven by an unprecedented surge in catastrophe bond issuance and strong global demand for protection. SCOR Investment Partners believes this robust primary activity will play a critical role in sustaining current spread levels across the market throughout the year.
The secondary market for catastrophe bonds alternated between extended periods of low trading volume and flurries of more active turnover in 2025. However, according to Swiss Re Capital Markets, the market remained relatively “bid-heavy” throughout the majority of the year, with limited offers and tightening spreads reflecting a sellers’ market