University of St.Gallen
research platform alexandria
search publications
browse publications
by person
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
 
by year

What Drives Insurers' Demand for Cat Bond Investments? Evidence from a Pan-European Survey

fulltext etc. no fulltext attached
abstract Although catastrophe bonds are continuing to gain importance in today’s risk transfer and capital markets, little is known about the decision-making processes that drive the demand for this aspiring asset class. In the paper at hand, we focus on one segment of the investing community. Our main research goal is to identify major determinants of the cat bond investment decision of insurance and reinsurance companies. For this purpose, we have conducted a comprehensive survey among senior executives in the European insurance industry. Evaluating the resulting data set by means of exploratory factor analysis and logistic regression methodology, we are able to show that the expertise and experience with regard to cat bonds, the perceived fit of the instrument with the prevailing asset and liability management strategy, as well as the applicable regulatory regime are significant drivers of an insurer’s propensity to invest. These statistical findings are supported by further qualitative survey results and additional information from structured interviews with the investment managers
of four large dedicated cat bond funds.
   
type journal paper
   
keywords Cat Bonds, Investment Decision, Insurance Companies, Exploratory Factor Analysis, Logistic Regression, Expert Interviews
   
language English
kind of paper journal article
date of appearance 10-7-2013
journal Geneva Papers on Risk and Insurance: Issues and Practice
publisher Palgrave Macmillan Ltd. (Hampshire UK)
ISSN 1018-5895
ISSN (online) 1468-0440
DOI 10.1057/gpp.2012.51
volume of journal 38
number of issue 3
page(s) 580-611
review double-blind review
   
citation Braun, A., Müller, K., & Schmeiser, H. (2013). What Drives Insurers' Demand for Cat Bond Investments? Evidence from a Pan-European Survey. Geneva Papers on Risk and Insurance: Issues and Practice, 38(3), 580-611, DOI:10.1057/gpp.2012.51.