ILS continues to attract investors, will further pressure reinsurers
Saturday, 12 12 2015, Category: Insurance and Reinsurance, Country: Europe
Insurance-linked securities (ILS) and reinsurance linked investments are continuing to attract capital market investors such as pension funds, resulting in continued growth of alternative capital and further pressure for reinsurers to face, according to regulator EIOPA.
The EU insurance and reinsurance industry watchdog, the European Insurance and Occupational Pensions Authority (EIOPA), has said before that it sees the growth of alternative capital as a “key risk” for traditional reinsurers.
In its latest financial stability report which was published on the 9th December, EIOPA highlights that while growth of alternative capital in reinsurance has slowed in 2015, in response to the reduction in available rates, it does continue to grow and as a result reinsurers will remain pressured by it.