Aon Benfield Securities, the investment banking division of Aon Benfield, announced Wednesday that it has launched a new client facility that offers cedents faster and more efficient access to capital markets capacity for catastrophe risk.
Featuring template documentation and pre-agreed wordings, CATstream enables catastrophe bonds to be established in less than half the time of the typical nonstandardized products. With faster access to capital markets capacity, cedents can take advantage of additional risk transfer capacity in note form, the company said in a statement.
CATstream can be used to structure transactions with index and indemnity trigger structures that relate to a broad range of perils and territories, allowing clients to enjoy capacity diversification, multiyear capacity and multiyear known pricing, according to the statement.
CATstream currently allows for special purpose insurers—the vehicles utilized in the structuring of catastrophe bonds—to be domiciled in Bermuda and Ireland.
Source: Aon Benfield