Review of Trends in Insurance Securitization April 2002 to March 2003

Abstract

The year 2002 was a record for insurance securitization. It's official. According to Marsh and McLennan $1.22 billion bonds were issued in 2002 versus $1.136 billion in 2000. Our own readings of history are slightly off calendar, usually measuring the 12 months in between first quarter ends. Nevertheless, like Marsh we believe that the most recent 12 months represent something of an uptick in activity. Like the margin by which the Marsh record was set, the magnitude of the uptick is small, tiny in fact, but potentially a significant harbinger of directional change. In truth, these are crumbs of comfort for those toiling in the vineyards of insurance securitization. The harvest from a great deal of intellectual and financial investment still eludes us. Notwithstanding, this article records the trends that have occurred during our last 12 months and the messages they contain for that brighter securitization future that surely lies ahead.