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Swiss Re : healthy future of ILS market predicted

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A new report by Swiss Re has predicted that the market for insurance-linked securities (ILS) is set for growth.

The report, entitled ‘The Fundamentals of insurance Linked Securities’ stated that the ‘market for insurance-linked securities is poised for continued growth as re/insurers, governments and corporations continue to access capital market solutions to finance growth, manage their capital and transfer risks related to natural catastrophes and other extreme events.

The Swiss Re study added that ILSs are a growing asset class attracting interest from firms looking to move peak risk and also from regular institutional investors who want to take a punt on the insurance industry.

Swiss Re itself claims to be a ‘pioneer’ of the sector and adds that its new report offers ‘a comprehensive overview of the structures and features of this growing asset class, together with a summary of the benefits of ILS from the perspectives of both the sponsor and the investor.’

The positive outlook is shared by the global reinsurance giant’s Head of Non-Life Risk Transformation, Martin Misping. He explained to the press that new interest in the sector in consistent and that it benefits from a strong set of stable, long-term partners.