Insurers and others use ILS to pass part of the disaster risk they have underwritten to capital market investors. The OECD report states that collateralized reinsurance has the largest share of the ILS market.
Insurance-linked security
- Japanese
- 保険リンク証券
- Also known as
- ILS, Insurance-linked securities
- Last reviewed
- October 4, 2026
This is a draft, shown for review before publication.
An insurance-linked security (ILS) is a financial instrument whose payments to investors depend on whether a disaster such as a typhoon or an earthquake occurs. Besides catastrophe bonds, ILS include collateralized reinsurance, industry loss warranties, and sidecars.