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Beachfront homes lie in ruin in the aftermath of Hurricane Sandy in the Rockaways, New York, Nov. 4, 2012. Munich Re, the world largest re-insurer (that is, the insurance companies’ insurer) knows the planet’s weather is changing radically and quickly because it is writing the cheques to cover the losses. Last autumn it said that natural catastrophes have doubled in the last three decades; extreme weather can take most of the blame.
Beachfront homes lie in ruin in the aftermath of Hurricane Sandy in the Rockaways, New York, Nov. 4, 2012. Munich Re, the world largest re-insurer (that is, the insurance companies’ insurer) knows the planet’s weather is changing radically and quickly because it is writing the cheques to cover the losses. Last autumn it said that natural catastrophes have doubled in the last three decades; extreme weather can take most of the blame.
(Steven Greaves/Corbis)

Why catastrophe bonds could be coming to Canada

When it comes to the hunt for yield, natural disasters could be an answer for Canadian investors.

Governments and insurers in other countries reduce the risk of natural disasters such as earthquakes or hurricanes by selling catastrophe bonds through the capital markets, and a Canada-exposed investment of that kind could be coming soon, Sharon Ludlow, chief executive of global reinsurance giant Swiss Re’s Canada office, said in an interview.