|
|||
|
|
|
The Holy Grail
Catastrophe bonds have been referred to as the Holy Grail for investors, in that they provide diversification opportunity that is basically untied to any other class of investment. Mother Nature, after all, does not get affected when the housing market collapses, or NASDAQ takes a tumble.
For reinsurers, however, such outside capital still represents a relatively small fraction of the overall market capacity. However, as these two reports--the first from Benfield and the second from Guy Carpenter--from reinsurance intermediaries show, the importance and share of CAT bonds and other risk syndications are growing. The first is Guy Carpenter's report on the growth of CAT bonds last year. The second is Benfield's January 2007 Global Reinsurance Market Review (the Pick 'n' Mix), an overall study of the reinsurance market. Pay special attention in the "Picking Opportunities" on CAT bonds.
September 15, 2007 Copyright 2007© LRP Publications |
|
|
|
Entire contents copyright © 2013 Risk and Insurance® All rights reserved.
May not be reproduced in any form without written permission.
|