Catastrophe bonds “gained in importance” in 2020, says Fitch



Catastrophe bonds became more important for the reinsurance market in 2020, as the record year of issuance saw use of the cat bond as a reinsurance or retrocession risk transfer tool increase, Fitch Ratings has said.

While alternative capital levels remained relatively flat overall through 2020 it seems, the catastrophe bond market was one area that gained during the year.

Catastrophe bonds gained in importance at the expense of collateralised reinsurance programmes, Fitch Ratings said in a recent report, highlighting a bit of a shift in investor demand for ILS products that was one of the drivers.

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