istock.com / alphaspirit
A lot happened quickly in the first half of 2017, but should that define the market for the quarters and years yet to come? Tom Johansmeyer of Verisk Insurance Solutions investigates.
All I can say is, ‘whoa, that was an intense quarter!’.
Twenty-one catastrophe bond issuances resulted in $6.5 billion in fresh capital—all in the second quarter of 2017. Last quarter would have been among the largest issuance years in catastrophe bond market history, and when we look at the first half of this year, we have the largest full-year issuance total since market inception.
In reflecting on the issuance year so far, two thoughts come to mind. First, I think back to the final days of my hitch in the army. I drove up the East Coast from Georgia to Boston, marvelling at the fact that so much could be done in so little time. It was intense, fun, and certainly worth the effort—much like the catastrophe bond market so far this year (although, in fairness, that’s where the similarities to military service end). On that same long drive home, my mind also turned, unsurprisingly, to the crucial question I faced: what comes next?
catastrophe, bond, ILS, growth, issuance, total, verisk, Johansmeyer