Asia-based cat bond issuance unlikely
A catastrophe bond from an Asian-based issuer is unlikely in the near term due to the high cost relative to traditional reinsurance
Despite issuances of catastrophe bonds in 2012 reaching the highest levels since 2007, the chances of an Asian-based insurer or reinsurer issuing a catastrophe bond remains low in the near term say market participants.
This is because the cost of issuing a catastrophe bond in Asia is currently more expensive than the traditional reinsurance route taken by most insurers in the region to hedge their catastrophe risk. As a result there is yet to be a home-grown issuance in Asia, meaning an Asian
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