ILS Market

The ILS (Insurance-Linked Securities) Market is a financial platform where investors can buy securities connected to insurance risk. Essentially, insurance companies create these securities to transfer some of their potential losses—like from natural disasters—to investors. This allows insurers to manage risk more effectively and access new funding sources. Investors, in turn, receive returns based on insurance claims, offering a way to diversify their portfolios with risk-linked assets. The ILS market thus bridges insurance and finance, enabling risk transfer while providing investment opportunities outside traditional markets.