LONDON, May 26 (Reuters) - The UK has assembled a panel of experts to advise on making the country a centre market for catastrophe bonds—bonds that insurers use to hedge against disasters or other costly events, such as hurricanes or a lottery jackpot payout.

        The British government wants to break into the fast-growing catastrophe bond market, now worth US$22 billion. Low-tax jurisdictions such as Bermuda are currently ahead of London.

        In its recent budget report, the government said it wants London to become one of the centres of the catastrophe bond market. London is one of the largest centres of the US$575 billion global reinsurance market.

       "A working group has been set up and we plan to have something by the autumn," said Barry Le Page of the secretariat of the London Market Group (LMG), an industry body.

       Since the financial crisis, the catastrophe bond market has grown at double-digit rates each year, as yield-hungry investors seek returns above those on government bonds.

        However, a report last year by the LMG and the Boston Consulting Group (BCG) showed that London's share of the global reinsurance market is declining, while Bermuda's is rising rapidly.

        The report noted that alternative reinsurance products such as catastrophe bonds could serve as a growth area for the business. (End)

Source: Reuters, 2015-05-27