Hedge fund cash reshapes reinsurance model


ALTERNATIVE investment managers are pouring unprecedented sums of money into the market for property cover, and reshaping a 180-year-old reinsurance model in the process.

Allocations to catastrophe bonds and other insurance-linked securities (ILS) popular among hedge funds and institutional investors rose 18% to reach a record US$136bil last year, according to data provided by broker Aon Plc.

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