Support MI up for updates Subscribe up for updates
About Research Events Centers Newsroom Currency of Ideas
 
Milken Institute | Research | Publications | Financial Innovations Lab Reports: Financial Innovations for Catastrophe Risk: Cat Bonds and Beyond
 Financial Innovations for Catastrophe Risk: Cat Bonds and Beyond
Financial Innovations for Catastrophe Risk: Cat Bonds and Beyond

Catastrophic losses from the Northridge earthquake, Hurricanes Andrew and Katrina, and widespread flooding in the early 1990s prompted many insurers to look for new market-based solutions to provide coverage in hazardous markets. As risks and costs continued to increase, however, insurance companies have had difficulty finding ways to cover these disaster-prone areas.

With a little bit of innovative thinking, and some help from capital market innovations, insurance companies could cover this risk and ensure that homeowners, businesses and communities are covered in case of a disaster. The key, the report states, is decreasing barriers in the emerging market of insurance-linked securities.

Catastrophe bonds - also known as cat bonds - and other insurance-linked securities are alternative sources of capital for insurers, reinsurers, governments and companies that can provide both capacity and price stability.

The report is based on a Milken Institute Financial Innovations Lab attended by representatives from the insurance, reinsurance, and bond ratings industries, along with practitioners in finance, law and government regulation. The Lab, which took place in October 2007 in New York City, and this subsequent report were supported by Allstate Insurance Company.

View update (May-June 2008).

 
Search All Publications
Paper or pixels?
2 ways to subscribe to
the Milken Institute Review
Download the app for
iPhone, iPad and Kindle

Buy new digital editions of our quarterly economics journal for $1.99, purchase back issues for 99 cents or get a year's subscription for $5.99. Access links to related video and other content.
Order a 1-year subscription
Receive hard copies for $59, a small price to pay for our edgy, accessible and expert take on the latest in economics.
Subscribe Now
About Us
  Careers
  Contact
  Download Annual Report
  FAQs
  Locations
  Our Team

Blog


Topics

Events
  Associates
  Conferences
  Global Conference
  Partnering for Cures
  State of the State
  Summits
  Asia / California / London
  Forums
  Labs
  Young Leaders

Experts
Newsroom
  Latest News
  News Videos
  Press Releases

Research
  Centers
    Asia
    California
    FasterCures
    Financial Markets
    Israel Center
    Public Health

Initiatives

Publications
  Books
  Financial Innovations Labs
  Milken Institute Review
   Amazon Apps
   App Store
  Research Reports
  Viewpoints
  Search All Publications
Support MI
  Associates
  Donate
  Sponsorships
  Strategic Partners

Follow Us
  @Twitter
  Facebook
  YouTube
  Google+
  LinkedIn
  iTunes U

Related Sites
  Partnering For Cures
  Celebration of Science
  Chairman's Corner
  Melanoma Research Alliance
  FasterCures

©2014 Milken Institute