The catastrophe bond market is very well-positioned, with cedent interest in utilising cat bonds as reinsurance risk transfer tools on the rise, while pricing has already risen high enough to attract investors to deploy more capital, according to GC Securities Shiv Kumar.
Speaking during a Guy Carpenter pre-Monte Carlo briefing, Shiv Kumar, President of the reinsurance broker’s investment banking and capital markets unit GC Securities, explained that the new higher levels in cat bond rates and pricing are likely to remain sticky.
But that he doesn’t feel additional price increases are required, in order to attract investors, perhaps a sign that Guy Carpenter feels further reinsurance market hardening could actually hurt demand, which was a sentiment that came across during the briefing session and from other brokers.
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