Summary
Insurers have become well versed in tapping into the capital markets to raise money for catastrophe risk as an alternative to reinsurance. They've also been able to securitize the additional reserves needed under Regulation Triple X. They've been able to securitize closed blocks of business and life settlements. Now, in addition to small to midsize insurers joining together in pools to raise money through securitizations, some have expanded the pools to include banks and even insurers from other countries. In addition to individual companies securitizing Regulation Triple X reserves, small to midsize life insurers may be able to join pools to securitize their Triple X reserves. And on the horizon, industry experts believe insurers will be able to securitize property/casualty reinsurance recoverables and on the life side, Regulation AXXX reserves.
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Extract
Financial Evolution
Money may not grow on trees, but many insurers are seeing green when they turn to the capital markets to raise money through securitizations.
Insurers have become well versed in tapping into the capital markets to raise money for catastrophe risk as an alternative to reinsurance.They've also been able to securitize the additional reserves needed under Regulation Triple X. They've been able to securitize closed blocks of business and life settlements.Now, in addition to small to midsize insurers joining together in pools to raise money through securitizations, some have expanded the pools to include banks and even insurers from other countries. In addition to individsual companies securitizing ...See the full content of this document
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