Bermuda has become the “epicentre” of a global Insurance Linked Securities (ILS) market that is now worth $15bn, according to PwC.

PwC Bermuda’s insurance leader Arthur Wightman said that a wave of catastrophe bond issuance was driving the growth, culminating in the formation of Bermuda-based special purpose insurer (SPI) Everglades Re. It was set up to underwrite $750m in cat bonds for Florida Citizens Property Insurance.

But the most interesting addition, he said, has been the establishment of asset management type companies like SAC Re, Third Point Re and CatCo. “That consolidates the view that ILS and Bermuda go hand-in-hand,” he said. “It is one of the growth areas in the market at the moment and I see it continuing to evolve.”

Wightman said ILS now accounted for 12-15% of global catastrophe reinsurance capacity. Credit Suisse expects that number to double in the next two years, according to a research note it released this month.