The insurance-linked securities market has continued to drop significantly, with only $US1.7 billion of non-life securities issued in the second quarter of this year, down from $US4 billion in 2018 and $6.2 billion in 2017 during the same period.

The Willis Towers Watson report says this is the lowest issuing of securities in the second quarter by volume in the past eight years.

Reported loss creep is affecting the market at a substantially reduced rate, the report says.

The US Federal Emergency Management Agency also issued a catastrophe bond for the second time in as many years for its national flood insurance program. The cat bond provides the program with $300 million in protection against storm-related flood events across the US.

Wills Re Securities MD William Dubinsky says the market environment is slowly returning to normal, and insurers will have to rely on relationships with reinsurers if they want to get reinsurance protection at sensible pricing, terms and conditions.