Reinsurance Magazine is reporting that Carvill have announced that it’s Carvill Hurricane Index contracts are selling extremely well on the CME. They say that the total traded in value is now fast approaching $60m.
Considering these contracts only launched just over a year ago this is a great endorsement of exchange trading catastrophe risks. It would be really interesting to know who the players in this market are. Whether reinsurers are forgoing catastrophe bonds in favour of trading their risks over the counter? Or whether this is corporates based in hurricane prone areas who are finding this a more cost effective way of protecting themselves than traditional property insurance?
Full story from Reinsurance Magazine here.