Cat bonds could help Gulf of Mexico energy sector
Saturday, 09 03 2016, Category: Insurance and Reinsurance, Country: World
Almost 60% of the outstanding catastrophe bond market protects assets along the U.S. Gulf coast. And with new regulation driving a need for increased capitalisation of companies that operate in the region, AIR Worldwide has underlined the importance of ILS in reducing risks for Gulf coast offshore assets.
Analysis of the Artemis Deal Directory reveals that of the $24.9 billion of outstanding catastrophe bond issuance in the market, close to $15 billion, or nearly 60% provides some reinsurance or retrocessional coverage for Gulf coast largely land-based exposures to named storms, hurricanes and wind events.