Investors drive strong activity in insurance-linked securities and expand into new structures
Updated
Updated · ProgramBusiness · Apr 29
Investors drive strong activity in insurance-linked securities and expand into new structures
5 articles · Updated · ProgramBusiness · Apr 29
A survey of over 60 institutional investors, most managing over $1 billion, shows rising appetite for insurance-linked assets and a shift beyond catastrophe bonds into sidecars and structured debt or equity.
Catastrophe bond issuance is projected near record highs for early 2026, but returns have softened from 14% in 2023 to 11% in 2024, prompting more nuanced investor strategies and structure selection.
As alternative capital options grow, insurers seek stable, long-term partners, while investors balance liquidity, complexity, and return expectations; full survey results will be released in May for deeper insight.
Are insurers trading long-term stability for a flood of opportunistic capital?
With returns falling, is the insurance-linked securities boom nearing its end?
How is the rise of 'nuclear verdicts' creating new insurance investment strategies?
Can Bermuda's new regulations truly tame the risks of creative capital?
Is the 'complexity premium' from sidecars a real opportunity or a hidden trap?