EU Watchdog Urges Monitoring Of Insurance-Linked Securities

Law360, New York (December 12, 2013, 5:48 PM EST) -- Europe's insurance watchdog on Thursday called for closer supervision of the insurance-linked securities market, which has enjoyed explosive growth.

The European Insurance and Occupational Pensions Authority said in a financial stability report that the issuance of insurance-linked securities has reached its peak since 2007, allowing large capital inflows across the sector and boosting global reinsurance capital to an all-time high, according to EIOPA.

ILS are portfolios of insurance policies grouped into packages that insurers sell to interested investors so they can transfer risk. The ILS market...
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