A record-breaking $US1.6 billion ($2.2 billion) of insurance-linked securities (ILS) were issued in the third quarter.

A market report from Willis Towers Watson’s reinsurance division notes the sum is well above the five-year average of $US800 million ($1.1 billion) and exceeds the $US1.4 billion ($1.92 billion) third-quarter record set in 2013.

Issuance is also on course to match or exceed last year’s $US9.7 billion ($13.31 billion) full-year record. This year’s figure is already at $US8.7 billion ($11.94 billion).

Willis Towers Watson says the ILS market is continuing to move away from parametric triggers: 60% of bonds are now triggered by insurer losses, up from 40% in 2008. It says this reflects improved data and transparency, and a greater understanding of indemnity risk.