Catastrophe bond issuance may resume in fourth quarter, say experts
Accusations are flying that a new risk model depressed the cat bond market in the second and third quarters of this year, but an equally likely cause of the dry spell could be recent disasters around the globe. Will the cat bond market recover its former vigour?
Catastrophe (cat) bond investors and issuers around the world are facing depressed deal levels after a series of natural disasters combined with the launch of a revised risk model in the second quarter of 2011. But industry experts are anticipating issuance to revive in the fourth quarter of this year, as the need for hedging becomes a focus once more.
The cat bond markets had a good 2010. Issuance of the bonds, which transfer risks from reinsurance companies, which sponsor the deals, to
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Catastrophe
Cat risk: why forecasting climate change is a disaster
Forecasters are poles apart on climate-driven catastrophes; insurers fear worse ahead
Catastrophe modellers embrace open platforms
Liberalised cat modelling market will place extra demands on model validation
Reinsurance sidecars evolving as competition for third-party capital hots up
Sidecars mimicking ILS funds to lure investors entering collateralised reinsurance space
Reinsurers welcome reduced collateral requirements for US business
Piecemeal reform of reinsurance laws continues to frustrate Lloyd’s market
Cat bond sponsors tempt investors with diversified perils and geographies
Innovative structures seek to break dominance of US wind peril over ILS market
Governments must ‘stop distorting cat markets’ with insurance pools
Let commercial market price risk, while governments should focus on risk-reduction, think-tank says
Better risk data vital if insurers to boost disaster coverage
Steps to improve risk modelling needed if Europe wants insurers to increase cat risk exposure, say experts
