APCIA CEO joins call for California to issue cat bonds to recapitalise FAIR Plan after fires

The CEO of the American Property Casualty Insurance Association (APCIA) has joined the calls on the California legislature to issue catastrophe bonds in order to recapitalise and stabilise the FAIR Plan in the wake of the damaging wildfire losses of recent weeks.

It’s not immediately clear whether this is a call for the cat bond structure we are focused on, so a securitized structure that provides insurance and reinsurance related risk capital to sponsors and is directly linked to the occurrence of natural events, or for a more traditional bond backed financing.

But, either way, looking to the capital markets to help in recapitalising and also reinsuring the FAIR Plan is going to be critical.

FULL ORIGINAL PUBLICATION HERE

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