Financial Lawyer

Much has been said about convergence between the insurance and capital markets. But what legal issues are involved?

By Christopher Stoakes

Investment bankers have been eyeing up the insurance market for some time. The small size of the reinsurance market ­ estimated at no more than a few hundred billion dollars ­ means it lacks the capacity to absorb a succession of catastrophic risks. If the capital markets, whose capacity runs to tens of trillions of dollars, can be tapped, there is money to be made by intermediating bankers.