Big Opportunities in Insurance-Linked Securities by Ryan Cashman, March 2015
Actuaries are evolving their skill sets to a burgeoning market.
The story of the insurance-linked securities market is one of rebirth.
The story begins in the mid-1990s, when reinsurers and primary insurers were struggling to find new capital to safeguard themselves from the financial risk associated with major catastrophes. The insurance world feared that when the 1-in-100-year Miami Hurricane or the major Tokyo earthquake happened, the market would not be able to abide. Insurers and reinsurers took it upon themselves to look for new sources of capacity.