Experts See Growth for Cat Bonds in Comp

Insurance analysts say more catastrophe bonds were issued in 2012 than any other year except 2007, and the ability to maintain growth will require moving into new markets such as workers’ compensation.A report on Artemis, a website that covers alternative risk transfer, cat bonds and insurance linked security, said $150 million catastrophe bonds sponsored by Aetna to cover medical risks in 2012 and 2013 could be a model for workers’ compensation “cat bonds.” Aetna’s bond pays out if the number of claims hits a certain trigger point.The bond protects Aetna from ris...