Contingent capital instruments, also known as contingent convertible bonds (CoCo bonds), contingent surplus notes, or enhanced capital notes, provide a mechanism that automatically convert the instruments to equity upon the occurrence of a specified trigger event. These instruments began to attract attention and gain popularity during the 2008 financial crisis. Before that, insurance companies protected themselves from capital deficiency under stressed situations by reinsurance arrangements, hedging programs, and capital raising. Those seem effective when systemic risk is mild in the financial system. However, the recent financial crisis told us that when systemic risk is prevalent, the cost of raising capital may be unaffordable. Much higher liquidity risk and counterparty risk might still put the company in a weak solvency position. Contagion impact is material and the market and regulators have been looking for capital instruments that provide better insulation. Contingent capital appears to be the most promising solution, although doubts about it are not rare.