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Swiss Re says institutional demand for cat bonds and ILS is rising fast
Swiss Re’s chief for insurance-linked strategies said risk-adjusted spreads remain above its return hurdles and that market terms and conditions are staying disciplined.
Swiss Re is seeing institutional investors show stronger, more engaged interest in catastrophe bonds and insurance-linked securities, and that demand is growing faster than recent increases in market issuance, according to Mariagiovanna Guatteri, chief investment officer of Swiss Re Insurance-Linked Strategies, speaking to Artemis around the 2026 Monte Carlo Rendez-Vous de Septembre reinsurance industry event.
Guatteri said investors are increasingly valuing a global reinsurer’s in-house understanding of perils, and she characterized the ILS and catastrophe bond markets as fundamentally healthy. She added that risk-adjusted spreads continue to exceed Swiss Re’s technical return hurdles and that terms and conditions have generally remained disciplined.
The Swiss Re executive also pointed to issuer behavior as the market expands, noting that some issuers are adding coverage for more secondary perils. Guatteri said this is not inherently negative as long as pricing properly reflects the incremental risk.
She further argued that improved insurer risk management, including exposure monitoring and mitigation, could contribute over time to lower loss volatility and better risk transparency, while emphasizing that market discipline should be supported across investors, dealers, issuers, and other participants in the chain.