This month, Tom Johansmeyer, AVP – reinsurance services, marketing at ISO/Verisk Insurance Solutions, talks about the growing interest in cat bond lite transactions.
Last year, $500 million in private catastrophe bonds reportedly came to market, and almost half of them were revealed to the public. In the first quarter of this year, close to $200 million in cat bond lite transactions were completed – and only two of them as renewals. The fast increase in adoption of the cat bond lite structure indicates that benefits of this approach are gaining a wide audience. Speed, flexibility, and tactical advantages make cat bond lite an important development for the insurance-linked securities (ILS) community.
Of course, a rapid rise doesn’t always mean further growth. Cat bond lite is still new, and the pace of innovation in the ILS community could provide additional refinements – or even something new – in the months and years to come. This is a development worth considerable attention, especially ahead of the June 1, 2015 reinsurance renewal.
With that in mind, let’s take a look at five important reasons to learn more about cat bond lite:
To continue reading, you need a subscription to Intelligent Insurer. Start a subscription today for £655.
In-house feature articles, the archive and expert comment require a paid subscription. Subscribe now.
Want to give it a try? We are offering a two week free trial to the Intelligent Insurer website – register and select “Two Week Free Trial” to begin access to the full Intelligent Insurer archive and read the latest news, features and expert comment. Begin your free trial here.
Is your 2 week free trial about to end? Upgrade to a 12 month subscription for £655 now.
If you have already subscribed please login.
If you have any technical issues please contact support.
ILS, Verisk, Cat bond lite