Insurance linked securities news, ILS news

Hong Kong’s new five-year plan highlights insurance-linked securities business and the ongoing development of its ILS regulatory regime as key strategic goals, with a PCC structure being explored for more cost-efficient ILS and catastrophe bond issuance, as well as ways to invigorate the investor side as well.

Given insurance-linked securities’ (ILS) ability to offer a bounded allocation whose premium compensates for real and imperfectly correlated tail risk, a new paper by Omnigence Asset Management suggests that ILS remains one of the most credible candidates for diversification when traditional stock-bond relationships falter.

The global data centre build-out is creating unprecedented risk concentrations in natural disaster zones, and pushing traditional insurance capacity to its limits. Howden sees this as a prime opportunity for the capital markets, as catastrophe peak risk remains the foundations of the insurance-linked securities (ILS) asset class.

Members Capital Management Limited (MembersCap) executives told us the company has recently launched its first catastrophe bond fund strategy to expand its offering to clients, while also disclosing that it was the investor behind a recent innovative industry-loss warranty (ILW) transaction.

Karen Clark & Company (KCC), the catastrophe risk modelling specialist, has launched RiskInsight® 4.16, the latest version of its RiskInsight open loss modeling platform, which introduces advanced performance, automation, and scalability enhancements for insurers, reinsurers, and insurance-linked securities (ILS) managers.

Data-driven insurance distribution platform Bamboo Insurance Services has so far attracted $400 million of third-party funds to support its Greenshoots Re Ltd. collateralized reinsurance sidecar vehicle, recent IPO filings show.

Disclosed capital from casualty sidecars since 2024 has surpassed US $2 billion, driven by a specialised investor base taking on long-tail risks, with casualty vehicles accounting for much of the sidecar market’s recent growth, a recent report from rating agency AM Best has highlighted.

With the catastrophe bond market consistently tapping into new and emerging perils, Jason Bolding, Global CEO of Gallagher Securities revealed to us in an interview at the Monte Carlo Rendez-vous event, that Gallagher Securities is currently working on a transaction for a peril that’s never been done before in the market.

CalPERS, the largest public pension fund in the United States, has continued to expand its investments in catastrophe bond and insurance-linked securities fund strategies with the combined valuation of its allocations to the asset class nearing $2.5 billion at the mid-point of 2026, an increase of around 70% just in the first-half of this year.

Appleby, the specialist offshore law and corporate services provider with a significant insurance-linked securities practice, has secured a minority growth investment from affiliates of New Mountain Capital, in a move that is set to accelerate the law firm’s growth strategy.