Catastrophe bonds increased in importance for the global reinsurance industry again in 2021, Fitch Ratings has said, as the record levels of issuance seen helped to make cat bonds an even larger pool of risk capital supporting reinsurer businesses.
Momentum in the catastrophe bond market continues to increase, Fitch said in a recent report, highlighting both the record level of issuance seen in 2021, as we detailed in our latest report, but also the fact that the cat bond market keeps growing, so taking an increasing share of global reinsurance program capital.
By our numbers, on the outstanding catastrophe bond market, growth of 4.3% was seen through 2020, but then more than 7.6% in market growth was seen in 2021, expanding the importance of cat bonds within reinsurance programs.
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