US hurricane risk continues to be the number one peril on offer

US hurricane risk continues to be the number one peril on offer

Catastrophe bond issuance in 2012 was the second highest on record, according to Willis, signaling strong growth in the market.

A total of $5.9bn-worth of catastrophe bonds were issued last year – an increase of 37% on 2011 – according to the latest Insurance-Linked Securities (ILS) Market Update from Willis Capital Markets & Advisory.

US hurricane risk continues to be the predominant catastrophic natural peril being securitized and sold in the capital markets – with 71% of outstanding cat bond limits exposed to some form of US hurricane risk.