See: “Risk Transfer, ART Instruments, Contingent Surplus Notes (Contingent Capital).”
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UK: A post-loss funding method based on an agreement between a (re)insurer and a bank (or other investor), whereby the latter will provide a loan or equity capital after the trigger event, e.g. windstorm, has occurred. The bank/investor charges a commitment fee for their pre-agreed standby capital. Contingent capital is less costly than conventional (re)insurance in fee terms if the trigger event never occurs. See CATASTROPHE EQUITY PUTS; CONTINGENT SURPLUS NOTE.