Zurich Insurance Group is exploring offering more products designed to protect banks from catastrophic losses by sharing risk with investors. As reported here last month, the insurer partnered with Credit Suisse to issue a bond paying investors a relatively high rate of interest in return for a claim on the capital in the event of a catastrophe, with an insurance element underwritten by Zurich that is triggered in extreme circumstances. The Swiss government has also been looking at ways to make it easier and cheaper for companies to raise money through equity offerings.
Zurich Insurance Group is exploring offering more products designed to protect banks from catastrophic losses by sharing risk with investors. As reported here last month, the insurer partnered with Credit Suisse to issue a bond paying investors a relatively high rate of interest in return for a claim on the capital in the event of a catastrophe, with an insurance element underwritten by Zurich that is triggered in extreme circumstances. It is now considering offering similar solutions for other banks.