Bermuda leads in ILS innovation


Bermuda leads in ILS innovation

iStock / bermudagov

2017 was a record-breaking year for ILS—and Bermuda again led from the front in terms of being both the domicile of choice for the special purpose vehicles issuing ILS and a hub of innovation for new structures and risks.

Bermuda remains the leading jurisdiction for the issuance of catastrophe bonds. Insurance-linked securities (ILS) issued from Bermuda represented 76.1 percent ($22.5 billion of $29.5 billion) of total outstanding capacity at the end of Q2 2017. Since 2010, 185 Bermuda-based special purpose insurers (SPIs) have been registered and have issued 187 ILS deals.

The importance of capacity provided by the ILS markets is now well understood by most working in the risk transfer industry. And it is becoming ever more important. In 2017, the catastrophe bond market reached a new record in 2017 with a combined total capacity of $10.7 billion, according to an Aon Securities report.

The Insurance-Linked Securities Year-End 2017 Update report reveals that during 2017, 35 catastrophe bonds were issued by 31 different sponsors.

Bermuda, ILS, market, domicile, leading

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