Mass Transit magazine features agency profiles, industry trends, management tips and new product information.
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80 | Mass Transit | MassTransitmag.com | SEPTEMBER/OCTOBER 2014 Te composition of the ILS market in- vestor base has signifcantly changed over time. Some of this change is simple market maturation, whereby some of the early pro- moters and investors, such as reinsurers, provided a much needed endorsement of the market in its early days. As more investors enter the space, traditional re- insurer participation has declined. Other contributing factors include industry and economic factors, such as post-event opportunities or fnancial stress, as was experienced in the global fnancial cri- sis in 2008. Following a large loss event, opportunistic investors, such as hedge funds and other proprietary funds, ofen increase their allocation to (re)insurance as expected return levels rise with the market. Conversely, when the market opportunity sofens these opportunistic investors tend to reduce their allocations or exit entirely. 1 855 510-7837 | QuesterTangent.com Communication is key to any healthy relationship. Using our industry leading technology, your trains will have the ability to reach out to you when there is a problem. No more guessing. No more trial and error. Tackle problems before you have them. Stop by booth 2355 at the APTA Expo and let's talk. Get your trains talking. For more information, visit www.MassTransitmag.com/10066266 7% Rest of world 10% Parametic 0% Paradex 0% Modeled Loss 1% Multiple 5% Japan 2% U.S. other 57% U.S. Hurricane 39% Industry Index 50% Indemnity 15% Europe 14% U.S. Earthquakes Charts by Aon Benfield Securities Inc. FIGURE 1: Property Cat Bonds Outstanding by Peril/Region, as of Oct. 31, 2013 FIGURE 2: Cat Bonds Outstanding by Trigger Type as of Oct. 31, 2013 CAT BOND MARKET