Capital markets now supply over 50% of retro capacity
Saturday, 01 16 2016, Category: Insurance and Reinsurance, Country: World
Capital market investors, through insurance-linked securities (ILS) fund managers and other collateralized underwriters of reinsurance risks, now provide more than 50% of global catastrophe retrocession capacity, according to Guy Carpenter.
The capital markets and ILS investors have been steadily growing their share of the global property catastrophe retrocession market for some years now. In fact the capital markets also has a growing role in other lines of retrocession, such as energy, marine, aviation and specialty risks, as these are often bundled or provided alongside catastrophe retro cover.