Capital Markets

The Missing Link in ILS Market Growth

The ILS (insurance-linked securities) market has shown impressive growth since its inception, but significant future gains could prove elusive. The tools needed to transfer risk to the capital markets simply don’t exi...

5 Key Catastrophe Bond Market Trends

Since the end of 2012, PCS has been tracking five major trends in the catastrophe bond market. The optimism with which 2013 began has grown into a record-setting first half, with the expectation that this year may...

Interest in Alternative Methods of Hedging Casualty Risk Increases

The insurance-linked securities and industry loss warranty (ILS/ILW) market for property catastrophe hedging is well defined and robust, but in the casualty space, the concept is still in its infancy. Interest in...

The Rise of the Private Catastrophe Bond

The Artemis Deal Directory added its second private catastrophe bond of the year. Sunshine Re is a $20 million transaction, sponsored by Florida Municipal Insurance Trust. It follows Skyline Re, a $61.2 million deal...

Five New ILS Market Developments

The second quarter is off to a great start, with more than $3 billion in catastrophe bonds announced or completed so far. And as the insurance and reinsurance industry prepares for hurricane season, the momentum shoul...

Will the Rising Loss Ratio Trend Continue?

Two years have passed since the inaugural release of the ISO Casualty Index ™ . In that time, we've published eight quarterly updates that include loss ratio and loss emergence data for the ten general liability and...

When Will We See a $50 Billion ILS Issuance Year?

Issuance of insurance-linked securities is growing rapidly. A recent Artemis report put the total outstanding at more than $40 billion. At $5.9 billion, last year was the second most active for catastrophe bond issuan...

Catastrophe Bonds: More than Half Way to $4 Billion

A lot has changed in only a few weeks. After a slower than expected start in the first quarter , the catastrophe bond market has gained momentum quickly. If the current announced transactions close without upsizing,...

Catastrophe Bonds: $4 Billion by June 30?

According to Artemis , Aon Benfield has forecast $4 billion in catastrophe bond issuance activity by the end of June. If that happens, 2013 will have become the most active first half in the history of the market. So...

ILS Frictional Costs: Evolution and Progress

Insurance-linked securities (ILS) transactions are not as expensive as they used to be. Five or six years ago, it could take months for a sponsor to complete a catastrophe bond, and it would cost as much as 50 basis...