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Article: Capital markets risk transfer products gain wider acceptance; Catastrophe bonds still strong while use of sidecars slides as crunch in reinsurance capacity continues to ease.(Spotlight: Reinsurance: Trends & Issues)
- Article from:
- Business Insurance
- Article date:
- October 29, 2007
- Author:
CopyrightCOPYRIGHT 2007 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: DOUGLAS McLEOD
Capital markets are well on their way to becoming permanent players on the risk transfer scene, but the volume of business in certain products will still rise and fall with changes in market conditions, market observers say.
The dollar volume of catastrophe bond issues so far this year has already surpassed last year's total, as more insurers turn to bonds to cover a wider range of perils and as the pool of potential cat bond investors grows.
Growth in the cat bond market may not be as explosive as it was in the immediate aftermath of Hurricane Katrina and other 2005 storms, but market participants predict it will ...