The market grew to $ 1 – 2 billion of issuance per year for the 1998 – 2001 period , and over $ 2 billion per year following 9/11 . Issuance doubled again to a run rate of approximately $ 4 billion on an annual basis in 2006 following Hurricane Katrina , and was accompanied by the development of Reinsurance Sidecars . Issuance continued to increase through 2007 , despite the passing of the post-Katrina " hard market , " as a number of insurers sought diversification of coverage through the market , including State Farm , Allstate , Liberty Mutual , Chubb , and Travelers , along with long-time issuer USAA . Total issuance exceeded $ 4 billion in the second quarter of 2007 alone
9/11
September 11 attacks
Catastrophe bond