The most recent alternative risk transfer deals are outlined.
A fundamental problem of alternative risk transfer - ART - is the difficulty in assessing what is included within the term. For example, the current trend at Lloyd's to access quota-share capacity in order to increase syndicate writings, to take advantage of current hard market conditions, is seen by some practitioners as a form of ART. Likewise, the use of captives to manage parent company exposures in the current world of high deductibles and wide exclusions, could be viewed as a form of ART.
In this table, however, Global Reinsurance is looking at the more esoteric ART products - securitisations, catastrophe bonds and the like. Although there was a view that activity would increase post-September 11, as capacity tightened in the conventional market, this doesn't appear to be the case. There have, however, been a number of deals in recent months which prove that the role of ART is still alive and kicking.
TO view this document you need Adobe Acrobat