LOGIN
 

Insurance-linked securities

Insurance-linked securities or ILS are single- or multiple-tranche securitisations facilitating the transfer of risk from the insurance sector to the capital markets. This transfer of risk usually references either catastrophe risk or life risk, though there have been securitisations of other insurance risk, such as motor. Catastrophe risk deals involve the transfer from one party to another of natural catastrophe risk, typically from non-life insurers or reinsurers via the capital markets to investors. It is facilitated by a variety of instruments, chief among them are catastrophe bonds or cat bonds; catastrophe risk obligations (CROs), which utilise collateralised debt obligation (CDO) technology to transfer risk to investors in multiple tranches; and industry loss warranty (ILW) based structures. Life risk transfer involves the transfer of longevity, mortality and pandemic risk from one party to another, typically from life insurers or life reinsurers via the capital markets to investors. Chief among the products used in this sector are life securitisations; life settlement securitisation; and longevity and mortality bonds.


  • SCI Start the Week - 11 July

    A look at the major activity in structured finance over the past seven days

    Pipeline Pipeline activity picked up again last week, with ABS leading the charge. There were nin...

    News    11 July 2016
  • Discount note cat bond emerges

    Swiss Re Capital Markets has placed a US$100m transaction in the ILS market, the first catastrophe b...

    News Round-up    8 July 2016
  • Cat bond activity dips

    Insurers and reinsurers' overall cat bond sponsorship approached US$3bn for the first half of this y...

    News Round-up    7 July 2016
  • Secondary markets advisors sought

    ESMA has published a call for candidates to form a consultative working group (CWG) for its secondar...

    Job Swaps    5 July 2016
  • SCI Start the Week - 4 July

    A look at the major activity in structured finance over the past seven days

    Pipeline Additions to the pipeline were limited once again last week, although two large Chinese de...

    News    4 July 2016
  • Rating agency increases reach

    Scope Corporation is set to acquire FERI EuroRating Services, effective from the start of August. Th...

    Job Swaps    30 June 2016
  • Acorn Re notes affirmed

    Fitch has affirmed Acorn Re Series 2015-1's US$300m class A notes at double-B. The rating agency bel...

    News Round-up    30 June 2016
  • SCI Start the Week - 27 June

    A look at the major activity in structured finance over the past seven days

    Pipeline Pipeline additions were limited last week. The only ABS was €1bn Silver Arrow...

    News    27 June 2016
  • SCI Start the Week - 20 June

    A look at the major activity in structured finance over the past seven days

    Pipeline The industry conference in Barcelona reduced primary market activity last week. There were...

    News    20 June 2016
  • Blockchain cat swap executed

    Allianz Risk Transfer (ART) and Nephila Capital have successfully piloted the use of blockchain smar...

    News Round-up    17 June 2016
  • Dual ILS tools debut

    Huang & Associates Analytics (HAA) has released two new ILS tools, RAPID Pro and Deal Tracke...

    News Round-up    16 June 2016
  • ILS fund administrator acquired

    Horseshoe Group has acquired IKONIC Fund Services, expanding its service offering to include fund ad...

    Job Swaps    14 June 2016
  • SCI Start the Week - 13 June

    A look at the major activity in structured finance over the past seven days

    Pipeline The total number of deals joining the pipeline remained consistent last week, although ABS...

    News    13 June 2016
  • SCI Start the Week - 6 June

    A look at the major activity in structured finance over the past seven days

    Pipeline The holiday-shortened week resulted in a slowing of the pace of pipeline additions. As wel...

    News    6 June 2016
  • Everglades Re upgraded

    S&P has raised its issue credit rating on Everglades Re Series 2014-1 notes to single-B plus...

    News Round-up    2 June 2016
  • Ex-SEC counsel joins law firm

    BakerHostetler has added Walter Van Dorn to its New York office as a partner. He was most recently a...

    Job Swaps    31 May 2016
  • Insurance risk specialist hired

    Miller has recruited Benjamin Gibbons in a business production and senior broking role, where he wil...

    Job Swaps    23 May 2016
  • Pandemic ILS prepped

    The World Bank Group has launched the Pandemic Emergency Financing Facility (PEF), a global financin...

    News Round-up    23 May 2016
  • SCI Start the Week - 23 May

    A look at the major activity in structured finance over the past seven days

    Pipeline ABS additions to the pipeline carried on last week at a good pace, as 11 such deals joined...

    News    23 May 2016
  • Solvency 2 to boost ILS?

    The size of the collateralised protection market is expected to increase from US$70bn to US$160bn by...

    News Round-up    20 May 2016
  • ILS methodology RFC issued

    AM Best has issued a request for comment on its draft Best's Insurance-Linked Securities and Structu...

    News Round-up    20 May 2016