ORIGINAL PUBLICATION HERE
The main rating agencies for the insurance and reinsurance sector all agree that the insurance-linked securities (ILS) market and alternative capital is set to grow in importance, scope and overall in size.
ILS market and alternative reinsurance capital growth has been steady over the last decade, but has accelerated since the losses of 2017, as the market recapitalised rapidly to support client needs and the total amount of capital under management at ILS funds we track at Artemis reached $102.8 billion in recent weeks.
In fact, if you add in all of the alternative capital that we cannot track (all sidecar capital, private quota shares etc), we would estimate the total amount at likely nearing $110 billion, as of this time. Add in the other ways institutional pension investors access insurance linked returns more directly and you could get closer to $150 billion.