BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.
To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.
To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.
Catastrophe bond issuance reached a record $12.5 billion in 2021, topping 2020’s $11.0 billion, according to Aon Securities, a unit of Aon PLC.
Aon added in its Monday statement that more than $32 billion of bonds are now active in the market and over $117 billion of catastrophe bonds have been issued over the past 25 years.
Sponsors of the securitized risk transfer are often insurers but also include governments, from municipalities to nations, and corporate entities.
Catastrophe bonds also provide substantial capital to reinsurance retrocession markets and have gained favor as traditional markets have hardened, as with Jan. 1, 2022, renewals.
Paul Schultz, CEO of Aon Securities, said in the statement that catastrophe bonds have become “an integral part of the insurance ecosystem.”
The catastrophe bond sector was born in December 1996 with the launch of the George Town Re Ltd. bond, the statement said.
Annual issuances of new catastrophe bonds and other related insurance-linked securities increased by 15% to a record high of $14 billion in 2021, surpassing the previous record set in 2020, Artemis reported. According to Artemis’ report, new cat bond and related ILS issuances reached $3.2 billion in the fourth quarter of 2021, alone.