Cat bonds & related ILS reach new $17bn annual issuance record
Catastrophe bond and related insurance-linked securities (ILS) new issuance has now reached $17 billion in 2021, setting a new annual record for the total tracked by our Artemis Deal Directory. It’s also notable that issuance of new Rule 144A property catastrophe bonds has surpassed $10 billion now for the second year running and only the second time in the cat bond market’s history. In fact, property catastrophe bond issuance has already reached almost $10.4 billion in 2021, so is now closing in fast on the annual record set a year ago,
Reinsurance: Innovative ILS addresses emerging needs
The past two years have seen innovative issuance of Insurance-linked securities (ILS), addressing different emerging needs, notes S&P Global Ratings (S&P) in a report. These needs include: The increase in insured exposure (e.g., properties exposed to typhoon risk in China); The protection gap to address the underserved following events such as the earthquake in Haiti; Additional investment around risk mitigation strategies to navigate new forms of volatility that can be protected against with parametric triggers, such as business interruption following no physical damage to property or damage to important infrastructure;
FT: Catastrophe bonds storm into mainstream as climate threat grows
To read the original Financial Times article click HERE