How do catastrophe bonds work?
A step-by-step guide to the cat bond lifecycle, from sponsor risk identification through SPV creation, investor participation, coupon payments, trigger mechanics, and maturity.
ILS101 Blog
Insurance-linked securities articles
Guides and articles on catastrophe bonds, ILS market structure, parametric insurance, reinsurance, and professional development. Written for insurance and capital markets professionals.
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ILS vs traditional reinsurance
A side-by-side comparison of insurance-linked securities and traditional reinsurance covering collateral, credit risk, capacity, pricing, flexibility, and basis risk.
What is parametric insurance?
How parametric insurance works, what triggers are used, what basis risk means, and where parametric products are used from sovereign risk pools to agriculture and energy.
Cat bond market 2026
An overview of the catastrophe bond market in 2026. Market size, issuance trends, spread dynamics, new perils, investor base broadening, and what is driving growth.
CPD for insurance professionals
What CPD means, why it matters for insurance and reinsurance professionals, what activities count, and how to earn 50 CPD hours in insurance-linked securities.
Insurance-linked securities as an investment
Why institutional investors allocate to ILS. Covers non-correlation, return drivers, fund structures, trapped collateral, model risk, and historical performance through major loss events.
Parametric insurance for governments
How governments use parametric insurance for hurricane, earthquake, drought, and flood cover. Covers CCRIF, African Risk Capacity, PCRAFI, and why speed of payout matters for public sector disaster response.
How do sovereign disaster risk financing programs use cat bonds?
How governments and multilateral institutions use catastrophe bonds for disaster risk financing. Covers the World Bank IBRD structure, CCRIF, parametric triggers, and basis risk.
What is collateralised reinsurance?
How collateralised reinsurance works, how it differs from cat bonds, and where it fits in the ILS market. Covers trust structures, trapped collateral, yield differences, and risk factors.
What is a cat bond trigger? The four types explained
The four types of catastrophe bond trigger explained: indemnity, industry loss, modelled loss, and parametric. How each works, basis risk, settlement speed, and real-world examples.
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