Property catastrophe reinsurance programs in Southeast US states have undergone a fundamental shift. Far from a supplementary capital pool, the Rule 144A catastrophe bond market has evolved into a fundamental element of regional risk placement, an integration that has inverted historical market norms over the last five years, according to Adam Schwebach, Head of Property, North America at Gallagher Re.
Speaking to Artemis around the key June 1 reinsurance renewals, Schwebach discussed how the ILS and cat bond markets have seen a wave of new entrants and upsized issuances ahead of the renewal season.
“It’s actually getting to the point where it’s a much smaller list of people that aren’t utilising a cat bond or the ILS market in some way, shape, or form,” Schwebach said.
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