How captives can open the door to greater utilisation of cat bond market 

• MTA pioneered captive access to the cat bonds in 2013 
• Market expanding beyond traditional property catastrophe risks 
• United States’ captive cat bonds more prevalent than Europe 

Catastrophe bonds (cat bonds) can provide corporates with an alternative source of capacity for catastrophe risks, with captives serving as the vehicle to transform those risks into the capital markets. 

Cat bonds are securities that transfer insurance risk to capital market investors. Investors provide collateral that can be used to cover losses if a predefined catastrophe event occurs, often through the use of a parametric trigger.