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Editor’s Note: Gary Kerney is assistant vice president, Property Claim Services (PCS), a member of the Verisk Insurance Solutions group at Verisk Analytics (Nasdaq:VRSK).You can follow PCS on Twitter at@PCSnews.

Innovation is at the heart of catastrophe bonds. From their origin—an exercise in innovation itself—through the development of new triggers and diverse structures, these instruments have brought increased capital flexibility to the insurance and reinsurance industry. To be successful, however, innovation must remain a practical matter, addressing the needs of a wide range of carriers.

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