The hype over cat bonds has been sustained by three years of dramatic growth. But can the good times last? Charles Thresh and Jonathon Lane consider the threat of the credit crunch to this burgeoning asset class.
Will reinsurers catch a cold? Hedge funds experienced their first negative quarter on record in Q1. That could have dire consequences for the insurance companies and products they invest in, explains Lindsey Rogerson.
Only a few years have passed since cat bonds were commonly described as “an elegant solution in search of a problem”. They have since become a vital tool in the risk transfer armoury, but will they remain there? asks Mark Hvidsten.
Can Bermuda reinsurers manage their excess capital successfully after two record-breaking years? If the market can get this right, it could just help to ease competitive pressures, explains Laline Carvalho.