Alternative Capital Role in Reinsurance Marketplace Discussed by Timetric in Its Insightful Report Available at

14 Mar 2017 • by Natalie Aster

LONDON – Traditional reinsurance companies are increasingly blending alternative capital strategies into their business models. Reinsurers are playing a prominent role in new capital management as well as in facilitating transactions in the alternative marketplace on the part of investors. Meantime, some reinsurers have cooperated with independent fund managers to perform transactions utilising alternative instruments like cat bonds, collateralized reinsurance, sidecars and industry-loss warranties.

The cat bond sector is heavily biased towards risk related to US perils. The greater part of capacity in the cat bond sector is used by risks linked to natural hazards. US multi-peril, US-named hurricanes and storms, and US earthquakes cumulatively grabbed just under 53.5% of cat bonds outstanding in November 2016.

The collateralized reinsurance sector outstripped cat bonds as the major source of capital in 2013, with respect to total capacity to the alternative marketplace. With the trend persisting, collateralized reinsurance capacity increased a faster growth pace compared to cat bonds from 2013 to 2015.

Insightful report “The Emergence of Alternative Capital in Reinsurance” drawn up by Timetric delves deep in an analysis of the development of alternative capital in the reinsurance industry, alongside discussing the key types of alternative instruments.

The research canvasses the alternative capital industry, reviews the market dynamics by looking into the developments in alternative capital. It discusses the convergence of the conventional reinsurance and capital marketplaces. The study gives detailed insights into market opportunities, trends, and key challenges. It gives a deep understanding of the main types of instruments used as an alternative form of risk transfer. It also examines the rising significance of alternative instruments as a class of assets.

More in-demand reports by our partner can be found at Timetric page.


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Natalie Aster
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