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MultiCat Funds Will Strengthen Mexican Reconstruction After Patricia

While hurricane Patricia was the strongest hurricane ever recorded and actually the strongest ever to make landfall in Mexico, the damages were describes as “little” or “not major”. Still, “little damage” by a hurricane can still be quite serious. Beforehand, the potential impact of Patricia was described as “disastrous” by the Mexican government. Considering this, […]

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MetroCat Provides Insurance for the New York Subway

When Hurricane Sandy hit North east USA on October 28, it caused enormous destruction, with 53 fatalities and estimated damages of 32 billon USD. In New York alone, the damages were estimated at 18 billion. The accompanying storm surge was more than 4 meters above the Mean Low Water. One of the more spectacular effects […]

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Cat Bond Lite Brings New Sponsors to Market

Historically, the costs of structuring a cat bond deal have been prohibitive for smaller sponsors. As a result, cat bond issuances have typically been very large and, thus, unavailable to smaller sponsors, left to the traditional reinsurance market. As a response to the lack of cat bond issuances in 2009-2010, the Credit Suisse subsidiary Clariden […]

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The First Cat Bond Ever?

Most people when asked about cat bonds will assume that they were first invented and issued in the United States, dominating the cat bond market today. Speaking about cat bonds as we know them today, this is certainly true. The modern cat bond market took off in the aftermath of Hurricane Andrew that struck Florida […]

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On the Diversification of Cat Bonds

Diversification of cat bond investments is essential to Entropics’ portfolio. As investments rely on calculated probabilities of the occurrence of natural catastrophes, the risk for correlation covering the same peril in one region is obvious. Lack of diversification entails an unnecessarily large risk of large losses. When diversifying a cat bond portfolio, the type of […]

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Can Cat Bonds Improve Catastrophe Preparedness?

In the past year (2013/14), extreme rainfall and storms have caused indemnities in Sweden of some 3 bn SEK (Dagens Nyheter: More rainfalls have cost billions, in Swedish only, October 16, 2014). In an international context, that is not alarming – the flooding in Copenhagen three years ago caused about 8 bn SEK of indemnities. […]

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The Ethical Aspect of Cat Bond Investments

An important, and often overlooked, aspect of cat bonds are the benefits they bring, facilitating increased access to insurance protection against natural catastrophes. When presenting cat bonds to a Swedish audience, the ethical aspect attracts a lot of interest. The asset class as such enables better insurance protection in exposed areas and provides for a […]

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