Bermuda has become the top home for insurance-linked securities following a major conference for international investors.

The Island has notched up $8.5 billion worth of insurance-linked securities (ILS) business listed on the Bermuda Stock Exchange in a market expected to grow to $100 billion globally over the next five years.

Now organisers of last month’s ILS Convergence 2013 conference — which attracted close to 300 delegates from around the world — have started organising a similar event for next year.

Arthur Wightman, insurance leader at PwC Bermuda, one of the organising committee, said: “Bermuda’s ascendancy to a global leadership position in reinsurance and the number one domicile for insurance-linked securities is on account of a number of structural advantages, but principally because of its capacity to solve problems and innovate.”

Horseshoe Group CEO Andre Perez said that the ILS Convergence conference helped highlight Bermuda’s role in the marketplace.

He added: “Above all, we wanted this event to demonstrate why Bermuda is a world-class reinsurance domicile and the worldwide centre of excellence for ILS and convergence.

“For those looking to set up an ILS or a reinsurance infrastructure, we want to assure them that Bermuda is the best place to do it.”

And he said: “This innovative sector has in its own way revolutionised how property catastrophe reinsurance is transacted and is causing traditional reinsurers to rethink their business model for this particular line of business.

“While the impact of the ILS market is mostly felt in property catastrophe reinsurance, there is no sign of stopping. I can see us talking at our tenth ILS Bermuda Convergence event about how ILS and collateralised structures are now present in all lines of reinsurance and insurance business.”

The ILS sector at present totals as much as $40 billion — close to 15 percent of the property catastrophe market and its share is continuing to grow.

Mr Wightman said: “The more traditional corners of the global capital markets will remain uninspiring for some time and the quality of ILS as an asset class is obvious to all.

“To sate the appetite from investors, the risk transfer market needs to continue to find innovative ways to increase capacity in the aggregate and grow demand.”

Tokio Solution Management CEO Kathleen Faries, who also sat on the ILS conference organising committee, added: “Bermuda has continued to respond to the needs of the market over the years.

“From the early introduction of captives, to developing a solid regulatory framework to allow for much-needed capacity to flow quickly after major cat events, and now bringing the expertise, legislation and services needed to enable new investors access through a variety of platforms.”

The keynote speaker at the ILS event was Steve Wozniak, the co-founder of computer giants Apple.

Jason Carne, head of ILS and managing director at KPMG Audit, said: “Steve Wozniak was the ideal speaker at the inaugural ILS Bermuda Convergence event, sharing with us his experience with innovation, vision and entrepreneurial spirit, all key behaviours we are witnessing in the ILS market today.”