According to a recent analysis by AM Best Director Matt Tuite, the insurance-linked securities (ILS) market has achieved a significant milestone, exceeding $107 billion.
This impressive growth can be attributed to a variety of factors, prominently featuring strong returns for investors and a noticeable increase in catastrophe bonds.
Catastrophe Bonds Drive Investment
Tuite pointed out that the stellar performance of catastrophe bonds has been a driving force behind new investment interest in the ILS sector.
As the market conditions remain favorable, a wave of new capital sources has emerged, propelling the market’s upward momentum.
Future Growth Prospects
In conclusion, the ILS marketplace is experiencing exceptional growth, largely fueled by impressive returns and the evolving landscape of catastrophe bonds.
Experts within the industry are optimistic, anticipating that interest in this sector will continue to expand, paving the way for further advancement.
Source: Ambest
