Insurance-linked funds
Bermuda is a world leader in the insurance-linked securities
(ILS) market as it continues to lead the way in innovation and
product development. Insurance-linked funds bring together the
investment funds industry and insurance/reinsurance industry
creating investment structures specialising in investment in ILS
products that include:
- Collateralised reinsurance.
- Catastrophe bonds (cat bonds).
- Sidecars (a financial structure
allowing investors to take on the risk and benefit from the return
of specific books of insurance or reinsurance business).
The Bermuda Business Development Agency (BDA) recently
commissioned a research report that revealed a total economic
impact of US$734 million from Bermuda domiciled insurance-linked
funds. The same report revealed that Bermuda is the most popular
jurisdiction for ILS-linked fund managers with approximately US$55
billion in aggregate under management in Bermuda. There were no ILS
entities
