Glossary Definition: Insurance linked securities (ILS) are financial instruments sold to institutional capital market investors whose values are directly determined by insurance loss events, most notably via catastrophe bonds (cat bonds). Deploying insurance linked securities allows international underwriting syndicates to bypass traditional constraints, injecting billions in capital liquidity into the broader reinsurance definition ecosystem following unprecedented meteorological disasters.
« Back to Glossary IndexInsurance-Linked Securities
« Back to Glossary Index