25% of reinsurers will use capital markets more in 2017
Friday, 12 02 2016, Category: Insurance and Reinsurance, Country: World
A quarter of insurance and reinsurance companies say that they will use the capital markets to an increasing degree in 2017, according to data from a survey of 107 re/insurance professionals undertaken by Guy Carpenter.
The capital markets are an increasingly prevalent part of most insurers or reinsurers capital towers, with reinsurance capacity provided by capital markets investors one of the fastest growing types of protection in the marketplace in recent years.
With insurance-linked securities (ILS) capital, invested into directly collateralised reinsurance, sidecar vehicles or instruments such as catastrophe bonds and industry loss warranties (ILW’s), now amounting to somewhere between $70 billion and $75 billion of reinsurance capital, it appears that the growth seen in recent years is likely to continue.