Cat bonds hit new high, corporate interest to drive growth
Saturday, 01 23 2016, Category: Insurance and Reinsurance, Country: World
The catastrophe bond market reached a new high at the end of 2015, with the level of issuance during the year outstripping a record high level of maturities, resulting in the market reaching the end of the year with cat bonds on-risk standing at an all-time high, according to Aon Securities.
The investment banking and capital markets arm of insurance and reinsurance broking group Aon has published its latest ILS and catastrophe bond market report. The report looks at the robust issuance in 2015 and discusses the growing interest from corporate sponsors, which is resulting in more fronted and parametric ILS or cat bond issuance.
However the report also explains that competition from traditional reinsurance companies has been high in 2015, which likely results in some risk that could have been structured as cat bonds being transferred to the traditional market instead.