Catastrophe Bonds

Catastrophe Modeling for Cat Bonds

When a company is structuring a catastrophe bond, it's free to choose whichever modeling agent it deems best. As part of the evaluation process, the company doesn't take model results at face value, but instead places...

5 Cat Bond Market Milestones in 2012

This year may be one of the most active in the history of the catastrophe bond market, but the headline issuance number is just the first noteworthy aspect. The sector has reached several major milestones in 2012, all...

High Cat Bond Issuance Highlights Their Growing Importance

No longer are catastrophe bonds a specialized niche market; they've become a standard part of the risk transfer strategies of many insurers and reinsurers. This year's issuance statistics convincingly reflect that...

The Key to Global ILS Market Growth

Is there an upper limit to the global market for insurance-linked securities (ILS)? Unsurprisingly, opinions in the insurance and reinsurance industry cover the entire spectrum. At one extreme are those who see...

Five Insights into the Third-Quarter Catastrophe Bond Market

Another quarter has come to a close, giving the catastrophe bond market fresh data and perspective. In the historically quiet third quarter, issuance was down compared with the same period in 2011. However, momentum f...

Catastrophe Bonds: Five Questions to Ask about Indemnity Triggers

The catastrophe bond market has matured since its inception about 15 years ago. Sponsors have more resources at their disposal for designing structures that deliver the specific protection they need, and investors hav...

Catastrophe Bond Update: Five Important Insights into 2012

With the first two quarters of 2012 now in the rearview mirror, looking back at the catastrophe bond market presents an attractive picture. A robust issuance year so far has led to $3.6 billion in new capacity and a...