London plans foreign aid cat bond
Friday, 07 15 2016, Category: Insurance and Reinsurance, Country: United Kingdom
London's insurance market plans a new type of catastrophe bond to help close the gap in uninsured disaster losses and build resilience for heavily exposed emerging markets.
The so-called Foreign Aid catastrophe Bond (FAB) will use the soon-to-be-created UK insurance-linked securities (ILS) regime to provide catastrophe risk-financing to disaster-prone countries, backed by commercial capital.
The concept is a joint effort between the UK government and the London insurance market, which have been collaborating on an initiative to make the city an ILS hub.
Source: Commercial Risk Europe