Capital market solutions more transparent

The annual volume of catastrophe risk securitisations should reach US$10bn by 2010 from only $1bn at present, Swiss Re predicts in its latest sigma report*. It also sees vast potential for securitising other types of cover, such as motor insurance, with greater frequency but lesser severity of loss. If capital market solutions can improve transparency, liquidity and efficiency, they could expand the limits of insurability, says the report.