Sean Baldwin and David Coon have authored an article in Risk Management magazine to analyze how the increasing frequency and severity of natural catastrophes have significant implications for the insurance market. The dramatic uptick of these events, largely due to climate change, affect the industry from the basic level of primary insurance all the way up to insurance-linked securities.
Parties in this market are now forced to navigate complex contractual issues that, while previously rare, have now significantly altered risk for participants in insurance-linked securities and retrocessional reinsurance transactions.
Baldwin and Coon examine the contractual issues that have led to high-stakes disputes between parties to insurance-linked securities transactions, the ways parties could avoid such disputes through careful contract drafting, and best practices for navigating disputes when they do arise.
Read the full article here.