Renewed interest in cat bonds sparked by energy sector demand

The effects of a shortage of traditional catastrophe cover are still being felt • CEA advocates risk-based Solvency II

The demand for catastrophe cover in the energy sector currently exceeds the appetite of the insurance market, Swiss Re’s chief executive officer Jacques Aigrain told a recent brainstorming session of the Advisory Panel called together by the company to explore the business climate. The result was that there was growing interest in transferring risks to the capital markets through catastrophe bonds.