ILS market update: March 2020

The Insurance-Linked Securities (ILS) market during 2019 shrank by 0.55% year over year (yoy) to USD 30.12bn from USD 30.28bn. The combination of a large volume of maturing structures along with lower average new issuance deal sizes were key attributes, which led to this lower outstanding amount at the end of 2019. New issuances fell by 43% yoy, to the lowest level of issuance since 2011, with roughly USD 5.5bn in new issuances in 2019.

Despite this, market participants continued to search for ways to introduce new sponsors and to offer innovative structures to stimulate growth, underscoring how the ILS market remains a reliable source of alternative capital and diversification for (re)insurance protection buyers.

ILS market update March 2020