In the current market, making the case for any asset class would be hard. However, the appetite for insurance-linked deals is growing and the market could see a volume increase over the next year, analysts said. To be certain, the potential for this market segment has been long recognized and analysts said that the current market environment might just be the right time to get the ball rolling.
On the one hand, with Solvency II - the updated set of regulatory requirements for insurance firms that operate in the European Union - implementation looming, insurers must now adapt to new capital requirements and manage their capital adequately. Agreement on a final proposal is set before the end of 2008.