Investors in Insurance-Linked Securities (ILS) Are Seeking Innovation and Improve Disaster Relief
Investors in ILS are seeking innovation—they may find it in Africa where a combination of transnational bodies, better data and a desire to structure improved disaster relief could combine with new ILS domiciles. Contents: A growing pipeline of risks could soon be transferred Investors used World Bank bonds as a diversification traditional capital Why 97% […]
Parametric Catastrophe Bonds and Alternate Risk Transfer Mechanisms for China’s Market
Even as countries across the globe grapple with climate change, alternate risk transfer mechanisms like parametric solutions are emerging as the best option. A parametric transaction uses the physical characteristics of a catastrophe event as the trigger. A catastrophe bond (CAT) is a high-yield debt instrument that is designed to raise money for companies in […]
Parametric Covers Are Finally Gaining Traction. Here’s How Companies Can Benefit
Parametric solutions are gaining in popularity, especially for businesses in the crosshairs of natural catastrophe risk. The traditional insurance model insures against specific losses, but in recent years, another model, parametric insurance, has been picking up steam. “Parametric insurance, sometimes also referred to as index-based insurance, is an insurance product that offers a predefined payout based […]
