Eastpoint Asset Management

As natural disasters become more frequent causing significant losses, it is now an important societal issue. While economic losses are covered through insurance, large scale losses could overwhelm insurers and reinsurers beyond their capacity. The need to alleviate this risk developed in to what is now known as the Insurance linked securities market, also represented by CAT bonds. Unlike traditional reinsurance, Insurance Linked Securities played an innovative role in merging the insurance market to capital markets, with the following benefits. Price transparency