Sovereign debt crisis spurs investment in cat bonds
Life insurers and pension funds using insurance-linked securities as diversifier, as deal activity jumps in fourth quarter
The eurozone debt crisis is encouraging pension funds and life insurance companies to increase their investment in catastrophe bonds, according to Swiss Re.
The lack of correlation to the sovereign debt crisis and the economy make cat bonds ideal for investors looking for alternative investment classes, says Martin Bisping, head of non-life risk transformation at Swiss Re.
"We are seeing more and more interest [in cat bonds] from pension funds and large institutional investors. And it is not
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