Paul Schultz, CEO at Aon Benfield Securities, talks to Intelligent ILS about short-term cat bonds, ILS transparency and trading in the secondary market.
The growing insurance-linked securities (ILS) market has encouraged sponsors to thirst for the ‘bespoke’ catastrophe bond, with many seeking longer terms and larger transactions.
The latest of these sponsors to enter the market with a rare term of six months, is AIG. In May this year, the insurer issued Compass Re II, which will cover the US hurricane season.
While a bond of this term is unusual, it has been done before as Paul Schultz, CEO, Aon Benfield Securities, explains.
ILS, Aon Benfield Securities, AIG, cat bonds