"As you create more and more demand," Ms. Klugman said, "the spread will go down."
"The financial markets tanking don't increase the possibility that there's going to be an earthquake," said Judy Klugman, managing director and head of insurance-linked securities distribution at Swiss Re, a reinsurance company that issues catastrophe bonds for its client insurers. "Investors are just generally nervous about everything that's going on in the financial world. Right now, they think this is a safe haven. They don't know where else to put their money."