20. The following statement is from an article by Christopher Kampa and Paul Siegert:

Insurance-linked securities, once considered to be an alternative form of risk transfer, have become a mainstream method of transferring risk from insurers to the capital markets. With greater attention being paid to risk at the institutional level and the search for portfolio diversification at the investment level, insurance-linked securities seem poised to further facilitate the convergence between the capital and insurance markets.23 Why do such products as insurance-linked securities represent the convergence of capital markets and insurance markets?