Insurance-linked securities (ILS)

Definition

Insurance-linked securities are investments whose returns depend on insurance outcomes, such as catastrophe bonds and collateralised reinsurance. They transfer insurance risk to capital markets investors. Bermuda is a leading domicile for them.

Why It Matters

AI is changing how catastrophe and cyber risk is modelled and priced, which flows directly into ILS markets.

Latest Coverage

• Bermuda reinsurers report Q3: Arch earns $1.03bn, RenaissanceRe posts $161m loss on bond marks 29 October 2026
• ILS Bermuda Convergence hears warning on concentrated AI and data centre investment exposure 20 October 2026
• ILS Bermuda Convergence warned of investor overexposure to AI and data centre risk 18 October 2026
• Zurich completes $10.8bn acquisition of Beazley 4 October 2026

More in AI in Insurance and Reinsurance.

Related Terms

• Segregated accounts company
• Parametric insurance
• Bermuda Solvency Capital Requirement (BSCR)

All glossary terms

Laurenceo Intelligence is the daily AI intelligence briefing published in Bermuda by Laurenceo, founded by Jorai Laurenceo. Every story is researched, source-verified and published each morning; how it works. General information only, not legal, regulatory or financial advice.