dutch auction

Tradition Re has announced the completion of the first Dutch auction for Florida hurricane windstorm risks. The deal allowed an unnamed reinsurer to hedge it’s hurricane exposure for the year and we believe this is the first time a Dutch auction has been used for this purpose within the reinsurance market.

The weather derivatives market is particularly quiet these days, not just because everyone is in Paris at the WRMA European event, but rather because the bulk of the market seems to be quietly transacted without any need for fanfare or announcement. The market is doing quite nicely on exchanges like the Chicago Mercantile Exchange (CME). […]