Munich Re sells the ultimate risk
Insurance survey: The new masters of risk? How insurers are testing out their capabilities in finance
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"We are considering longevity derivatives and branching out into other insurance asset classes"
Michael Spencer, chief executive of Icap |
WHEN THE WORLD’S largest interdealer broker plunges into a new financial market, it’s a reasonable bet that it is one set for substantial growth. In February 2007, Icap, which boasts a daily transaction volume of more than $1.5 trillion in interest rate, credit, energy, foreign exchange and equity derivatives markets, established a joint venture with insurance broker Jardine Lloyd Thompson to operate in the markets where insurance, financial derivatives and securities are converging.
Setting up operations took time and it wasn’t until late last year that it completed its first deal, an over-the-counter catastrophe swap on North American windstorm risk of undisclosed size between two...
