As the catastrophe market matures, it is becoming increasingly accessible to smaller issuers or those looking to offload a very specific kind of risk.
One of the latest examples of this is a platform called Market Re that was established this year by Jardine Lloyd Thomson Capital Markets (JLTCM), a unit of JLT Towers Re of the U.K., in partnership with Bermuda-headquartered ILS management. Market Re is a special purpose vehicle registered with the Bermuda Insurance Authority. It allows sponsors to reduce some of the frictional costs they would incur in setting up their own special purpose vehicles because documentation and other parts of the deal process are standardized. Cedents also save money by partnering with the same service providers as other users of the same platform.