A survey of 107 (re)insurance specialists by reinsurance broker Guy Carpenter shows that 25% of (re)insurers will make greater use of capital markets tools in 2017.

        The use of capital markets tools to enhance capital protection capacity has become increasingly popular in recent years. Reinsurance capital using insurance-linked securities products to invest in instruments such as direct collateralized reinsurance, catastrophe bonds and industry loss warranties (ILWs) has reached US$70–75 billion and continues to grow.

       As shown in the chart below, 52% of surveyed (re)insurance specialists voted that they would use more traditional reinsurance in 2017, 25% said they would use capital markets, 18% said they would use balance sheet capital, and only 5% said they would use internal reinsurance tools.