However, information on credit insurance pricing and performance needs to become more accessible if the market is to develop fully, Lenna said.
Meanwhile, Willis' Groth said that regulators' concerns over credit risk contagion spreading via collateralised debt obligations could potentially have a significant impact on the way the market develops. Some insurers originally got into the credit risk transfers market because they wanted a new source of revenue where pricing wasn't low, but now they are pricing and managing risk appropriately, Groth said. "Innocent capacity is now being replaced by smart capacity," he added.
The week on Risk.net, July 7-13, 2018Receive this by email