Aon Benfield Securities launches CATstream
Aon Benfield Securities, the investment banking division of global reinsurance intermediary and capital advisor Aon Benfield, has launched a new client facility which it said will offer “cedants faster and more efficient access to capital markets capacity for catastrophe risk.”
The division said that CATstream features template documentation and pre-agreed wordings, which will allow catastrophe bonds to be established in less than half the time of the typical non-standardised products.
“With faster access to capital markets capacity, cedants can take advantage of additional risk transfer capacity in note form,” it said.
CATstream currently allows for the domiciliation of special purpose insurers (SPIs), the vehicles utilised in the structuring of catastrophe bonds, in Bermuda and Ireland.
The streamlined documents developed for CATstream have been reviewed and approved by the associated service providers and regulators which means that transactions can be brought to market quicker and with lower frictional costs, said the division.
“CATstream can be used to structure transactions with index and indemnity trigger structures that relate to a broad range of perils and territories, allowing clients to enjoy capacity diversification, multi-year capacity and multi-year known pricing,” it said.
Paul Schultz, chief executive officer of Aon Benfield Securities, said: "We are launching CATstream at a time when the insurance-linked securities market is showing continued strength; where sponsor and investor demand for ILS products is at an all-time high. We believe that this facility can only promote the growth of the market, by enabling sponsors to secure capital markets coverage within a short timeframe for the structuring of products in strong and proven domiciles at lower frictional costs."
