Risk

Defying Gravity

One distinguishing aspect of the current insurance market cyle is that reinsurers are attempting to defy the common gravitational pull in a soft market towards lowering premium rates. Reinsurers have thus observed an widening gap between their own rates and those of primary insurers .

June 30, 2008

15 min read

Nuclear Insurance Proliferation

A nuclear insurance pool has existed in Canada since the mid-1950s. Although the pool is well-capitalized, an optimum spread of risk calls for more insurers to participate

June 30, 2008

6 min read

Pulling the Parametric Trigger

The use of parametric indices in catastrophe bonds could address the fundamental tension between transparency in the bond structure and the hedging of basis risks

June 30, 2008

4 min read

What is a Catastrophe Bond?

A catastrophe bond, usually abbreviated as a ‘cat bond’ is a mechanism for transferring insurance risk to the capital markets. The cat bond is issued by a Special Purpose Vehicle (SPV) established to support the transaction; the sponsor transfers risk to the SPV through a reinsurance arrangement. The SPV funds itself by issuing a cat […]

June 30, 2008

1 min read