Disaster bonds more popular

New York’s transit authorities have turned to Wall Street to insure the city’s subway in the wake of Hurricane Sandy, The Economist reports.

Read: SEC issues alert on disaster recovery planning

Traditional insurers were reluctant to take a chance on the transit system, which flooded during last year’s storm.

Instead, the city has issued a “catastrophe bond,” and raised $200 million from investors, says The Economist.

If there’s another serious subway flood in the next three years, the money goes towards paying for repairs. If there isn’t, the investors get their money back, with interest.

It’s not the only bond of its kind.

Read more here.

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Cyber threats pose systemic risks to markets

Insurance tips for flood victims

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.