ILS market to double in size within five years
Friday, 06 26 2015, Category: Insurance and Reinsurance, Country: World
A new academic empirical study, undertaken by the University of St. Gallen in Switzerland, concludes that the insurance-linked securities (ILS) market can be expected to double in size over the coming five years.
The study authors found that further growth of the use of ILS for risk transfer and as an investment opportunity is to be expected, with the low correlation to other financial products and the relatively high yields likely to drive investor demand.
The study authors estimate the size of the ILS market at roughly $44.7 billion of invested capital. This is below many other estimates, but their work focused on specific investors, was based on empirical evidence and was completed in late 2014.