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Investors in Insurance-Linked Securities Seek to Avoid Exposure to Secondary Perils

September 28, 2021

Investors in insurance-linked securities are leaning toward structured catastrophe bonds rather than broader ILS instruments to steer away from unexpected losses from secondary perils. At the same time, catastrophe bond investors are accepting lower yields than they did two years ago, but investors in reinsurance stocks are demanding higher returns, which is creating a disconnect.

These are just some of the observations of experts about the current state of the ILS market, which were discussed at Munich Re’s ILS Roundtable and Aon Reinsurance Solutions’ renewal briefing.

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