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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.


  • 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
  • SFIG adds advocacy leader

    SFIG has named Thomas McCrocklin as director of advocacy. He will report directly to executive direc...

    Job Swaps    18 May 2016
  • SCI Start the Week - 16 May

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

    Pipeline While ABS additions to the pipeline were steady last week, they were joined by a greater v...

    News    16 May 2016
  • Everglades loss risk up slightly

    S&P has affirmed its double-B rating on Everglades Re II Series 2015-1. The probability of a...

    News Round-up    16 May 2016
  • ILS pro takes full reins

    Rafal Walkiewicz has been appointed as the sole ceo of Willis Capital Markets & Advisory (WC...

    Job Swaps    12 May 2016
  • Swiss Re promotes ILS leaders

    Swiss Re has named Judy Klugman and Jean-Louis Monnier as co-heads of its global ILS business. Klugm...

    Job Swaps    11 May 2016
  • Legacy loan ILS hits market

    United Guaranty Corporation (UGC) has obtained US$298.6m in reinsurance coverage for its legacy port...

    News Round-up    10 May 2016
  • Insurers' structured holdings slip

    Life insurers held more than US$380bn of structured products securities at the end of 2015, which We...

    News    10 May 2016
  • ILS affirmed on resets

    Fitch has affirmed its ratings on five tranches from four catastrophe bonds - Long Point R...

    News Round-up    9 May 2016
  • SCI Start the Week - 9 May

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

    Pipeline Last week's pipeline additions consisted of eight ABS, two RMBS and a single CMBS. The A...

    News    9 May 2016
  • Marsh recruits risk pro

    Marsh has hired Abbey Sturrock for its political risk and structured credit practice, serving as svp...

    Job Swaps    5 May 2016
  • Securitisation leader named

    Hannover Life Reinsurance Company of America (Hannover Re US) has promoted Dale Mensik to svp, finan...

    Job Swaps    4 May 2016
  • TigerRisk builds ILS trading capability

    TigerRisk Capital Markets & Advisory has received FINRA approval to trade catastrophe bonds...

    Job Swaps    4 May 2016
  • Kane platform rebranded

    Artex Risk Solutions has rebranded the insurance management operations it recently purchased from Ka...

    Job Swaps    4 May 2016
  • London touted as cyber ILS hub

    The London ILS market is "perfectly positioned to become the global centre for cyber risk insurance"...

    News Round-up    27 April 2016
  • SCI Start the Week - 25 April

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

    Pipeline Last week's pipeline additions were concentrated in ABS. There were six new ABS announced,...

    News    25 April 2016
  • Cat bond issuance hits record

    Catastrophe bond issuance set new records for issuance in 1Q16, according to Aon Benfield's quarterl...

    News    21 April 2016
  • Global ILS head poached

    TigerRisk Partners has recruited Philipp Kusche as partner and global head of ILS and capit...

    Job Swaps    19 April 2016
  • SCI Start the Week - 18 April

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

    Pipeline Last week there were nine ABS deals added to the pipeline. A further three RMBS and two CM...

    News    18 April 2016
  • Bermuda law firm beefs up

    Harneys has recruited corporate and insurance lawyer Michael Skrbic as counsel in its Bermuda office...

    Job Swaps    14 April 2016
  • Cat bond fund launched

    Lombard Odier IM has launched its first catastrophe bond fund, following its recruitment dr...

    News Round-up    13 April 2016