Ping An highlights parametric and index insurance for combatting climate change
Richard Sheng, Secretary of the Board of Directors for Chinese insurer Ping An, has highlighted the role of parametric and index insurance in combatting the challenges of climate change. Speaking via videoconference on green and sustainable finance during the recent COP27 event, Sheng noted how his company has been exploring coverages that combine parametric and […]
Risk pools ARC, CCRIF and PCRIC agree to partnership at COP27
Global risk pools African Risk Capacity Limited (ARC Ltd.), CCRIF SPC (formerly The Caribbean Catastrophe Risk Insurance Facility) and Pacific Catastrophe Risk Insurance Company (PCRIC) have agreed to a partnership at the recent COP27 climate conference. The parties signed a memorandum of understanding (MOU) on the sidelines of COP27 in Sharm el Sheikh, Egypt to […]
SCOR to adapt retrocession to reflect market appetite & cat exposure for 2023
For global reinsurance company SCOR, 2022 saw the company adding new quota share sidecar capacity from third-party investors to its retrocession program, as it looked to add more diversification to its retro capital sources, while strengthening its retro protection. SCOR has always been a relatively significant buyer of retrocessional reinsurance protection, with its program usually […]
COP27: World Bank to launch Global Shield Financing Facility (GS-FF)
At the COP27 climate change conference in the coming days, the World Bank is set to announce the launch of the Global Shield Financing Facility (GS-FF), which will be an important new financing structure to channel capital to protect vulnerable nations against climate and disaster risks. Details are limited right now, but from what we […]
Cat bond spread levels double since the start of 2022: Tenax
Spread levels in the catastrophe bond market may have doubled since the beginning of 2022, as the market reprices return expectations in the wake of hurricane Ian, according to Tenax Capital. Tenax Capital, the London based hedge fund that was founded by its CEO Massimo Figna and offers a UCITS catastrophe bond fund to its […]
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 […]
Singapore to expand ILS offering, as confidence in it grows: Minister Alvin Tan
Insurance-linked securities (ILS) deal flow in Singapore has been increasing, showing that the market is gaining in confidence in Singapore’s ILS regime, Minister of State for Trade and Industry and Monetary Authority of Singapore (MAS) Board Member Alvin Tan has said, also explaining that expansions to the ILS regulations are coming. Speaking at the Singapore […]
What is the impact of climate change on insurers
The climate crisis will have dramatic impacts on economies and business communities, but the insurance industry could change the narrative through an innovative attitude to coverage. By Arup Chatterjee Principal Financial Sector Specialist, Sustainable Development and Climate Change Department at Asian Development Bank As time wears on, it’s becoming clear that failure to address the […]