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According to Willis Towers Watson (WTW) figures, 2017 was a record-setting year for the ILS market as non-life ILS issuance continued to increase and ended the year close to $10 billion
Insurance buyers could be looking at more affordable and readily available insurance options in 2018 as investors show mounting interest in the Insurance Linked Securities (ILS) market following a stellar performance last year.
According to Willis Towers Watson (WTW) figures, 2017 was a record-setting year for the ILS market as non-life ILS issuance continued to increase and ended the year close to $10 billion.
It is estimated that non-life ILS capital stood at $88 billion at year-end 2017, which represents a year-on-year increase of 17% from $75 billion in 2016.
According to WTW, this shows that the ILS market was able to withstand the 2017 natural catastrophe losses as funds diligently reached out to their investors and risk partners ensuring an orderly and supportive environment.
It also shows that ILS capital is looking to both the short-term potential for modestly better risk spreads and the longer term opportunity to partner with reinsurers, insurers and insureds to fuel AUM growth and ultimately make insurance more available and affordable.
Bill Dubinsky, WTW managing director and head of ILS, Willis Towers Watson Securities, said: “We see no end in sight to ILS growth. The ILS community is signalling that it is ready and open for business. 2018 is shaping up as a brutal battle for market share between, on the one hand, incumbent reinsurers and ILS investors trying to both maintain their positions and exact some rate increases and, on the other hand, other ILS investors and reinsurers trying to stake a claim to participate in additional risk.”
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