Here’s an interesting question for a Friday discussion…
Could you see a day when brokers might begin issuing their own insurance-linked securities such as catastrophe bonds and sidecars? If a broker could take his bucket of risks directly to the capital markets through their own SPV and the notes are set up with a parametric trigger, couldn’t they bypass the need for a re/insurers involvement? Could an investment bank do this for the broker as well, again negating the need for a re/insurer?
Please vote and if you have an opinion add a comment!