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Poised to reach new heights in the coming months on the back of bumper year’s of catastrophe bond issuance, the insurance-linked securities (ILS) market is at “an exciting inflection point,” says Co-founder and Managing Director of Fermat Capital Management, John Seo.
In spite of the impacts of the catastrophe events that occurred in 2017 and 2018, subsequent losses and issues of trapped collateral, the ILS market has continued to expand in recent times, albeit at a somewhat reduced pace when compared with previous years.
Reports on the overall size of the ILS market at the end of 2018 do vary. However, the general consensus from insurance and reinsurance brokers is that even with the inclusion of trapped collateral, the market grew once again in 2018, and is approaching the $100 billion mark.