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The Commissioner of the Oklahoma Insurance Department, John Doak, has underlined the important role catastrophe bonds play in the “financial tapestry” of insurers. A view supported by the increasing volume of ILS capacity utilised within insurers’ reinsurance programmes.
Despite the recent rise of the collateralised reinsurance sector, catastrophe bonds likely remain the most dominant force of the expanding insurance-linked securities (ILS) space, underlined by the record-breaking volume of issuance witnessed in Q1 2016.
“As the dominant form of ILS, catastrophe bonds are a critical piece of the financial tapestry that allows insurers to remain solvent and successful,” said Doak, in a recent interview with Clear Path Analysis.