Zurich Insurance Warns Data Center Boom May Spur Securitized Insurance Products
Zurich Insurance warns that the scale of global data-center investments may exceed traditional insurers' risk appetite, potentially leading to securitized insurance products to distribute exposure.
Zurich Insurance has cautioned that the rapid expansion of data-center investments worldwide could overwhelm the risk capacity of traditional insurance markets.
The firm suggests that this may drive the creation of securitized insurance products, allowing risks to be distributed across a broader investor base.
The warning highlights the growing financial footprint of data centers as a key infrastructure asset class.
Source: First Squawk