The growth story behind insurance-linked securities
Their appeal lies in their independence from economic cycles and their potential to provide steady returns even when traditional markets are under stress
AFTER years of low yields and rising macro volatility, investors are demonstrating renewed interest in insurance-linked securities (ILS) for their very low correlation with traditional financial markets. Despite event-driven volatility, the first half of 2025 reaffirmed the market’s strength and growing scale.
According to mid-year industry data, ILS issuance reached US$17.2 billion across nearly 60 transactions, making 2025 the second-largest year in the market’s history, with half the year still to go.
The total market size surpassed US$56 billion, having expanded by more than 75 per cent since 2020. Last year alone saw 10 new issuers and three wildfire bonds, signalling growing investor confidence alongside supportive market dynamics.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
