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Global News - ILS market records US$70 billion in 2015 amid growing investor confidence

Source: Asia Insurance Review | Mar 2016

Non-life insurance-linked securities (ILS) capital hit new heights in 2015 as (re)insurer interest and investor confidence continued to grow, broadening their horizons to include new products and perils, according to Willis Capital Markets & Advisory (WCMA).
 
   Total non-life ILS capital reached $70 billion at year-end 2015 as net new capital continued to enter the market. This exceeded the record $65 billion level at year-end 2014. 
 
   ILS products such as sidecars, industry loss warranties and collateralised reinsurance showed considerable growth during the year. 2015 also saw the continuation of the gradual move towards a broader array of risks transferred, with increasing interest beyond natural catastrophe perils to life, accident & health and casualty risks.
 
   Non-life catastrophe bond issuance on the other hand, which has seen continued y-o-y growth since 2011, slowed to $6.2 billion for the full year, compared to the record $8 billion issued during 2014. WCMA said in its report that this was mainly due to one-off factors such as multi-year deal inception dates. It added that the drop did not signify a decline in appetite for such transactions as the number of deals in 2015 had in fact increased y-o-y.
 
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