insurance capital markets

Insurance capital markets involve the exchange of financial instruments, such as bonds or securities, that help insurance companies raise funds or transfer risk. These markets enable insurers to access additional capital, manage exposures, and improve financial stability. Investors, in turn, purchase these assets for potential returns, often motivated by the insurance company's creditworthiness and risk profile. Overall, insurance capital markets facilitate efficient allocation of financial resources, support the growth of the insurance industry, and promote resilience against large or unexpected claims.