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Insurance-linked securities market hits US$70b in 2015: Willis

[LONDON] The market for non-life insurance-linked securities (ILS) rose to US$70 billion from US$65 billion in 2015, Willis Capital Markets & Advisory said on Tuesday, as more investors pumped money into the market in a hunt for yield.

ILS allow insurance risk to be shared with a broader range of investors than traditional reinsurance and can take the form of a range of securities including catastrophe bonds.

Among the ILS products proving popular were collateralised reinsurance, Willis said, and a broader array of risks were offered for investment, including accident & health and casualty risks.

"As investors continue (to) become more comfortable with this maturing asset class, there remains clear appetite to deploy capital across a broader array of risks and products as long as investment standards are met," said Bill Dubinsky, head of ILS at WCMA.

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"Overall...the ILS market is healthy and of keen interest to institutional investors, insurers and reinsurers, and increasingly to corporates and governments as well."