Our industry needs to look at hurricanes from an evolved perspective: Swiss Re
A recent Risk Perspective blog from Swiss Re’s Mohit Pande has outlined the hurricane risks that the industry and economy currently face. According to CoreLogic, nearly 33 million homes on or near the Atlantic and Gulf coasts are at risk of hurricane-force wind damage, the estimated cost to replace them is $10.5 trillion. The impact […]
Cyber ILS market growth to be slow, as investors still hesitant: S&P
Many insurance-linked securities (ILS) investors remain hesitant about allocating capital to cyber insurance and reinsurance risks, which leads rating agency S&P Global to suggest growth of a cyber ILS market will likely be slow in the short to medium term. With market conditions for insurance-linked securities (ILS) investors seen as improving after several difficult years […]
Era of catastrophe-focused traditional reinsurers may be over: AM Best
The era of catastrophe-focused traditional reinsurers appears to be over, rating agency AM Best announced today, as the pulling-back continues in some quarters, while the addition of more diversifying lines of business accelerates among once cat-specialist US and Bermuda based reinsurance firms. AM Best explained in a recent report that the catastrophe exposed regions of […]
ILS industry has tools to tame inflation: Lohmann, Schroders Capital ILS
While the insurance-linked securities (ILS) industry cannot avoid inflationary effects completely, the structures utilised have some tools embedded that allow ILS managers to tame the effects of inflation on their portfolios, according to Dirk Lohmann, Chairman, Schroders Capital ILS. In a recent paper, Lohmann gives an insightful overview of the threats inflation can pose to […]
African Risk Capacity (ARC) seeks cost-efficiency and capacity
The African Risk Capacity (ARC), a provider of parametric disaster insurance products to countries and now other entities in Africa, wants to become the continent’s disaster risk financing provider of choice, but increasing its capacity and lowering-costs for country members remains key. Efficiency has always been important for the African Risk Capacity (ARC), particularly in […]
Traditional reinsurance capital to shrink, ILS to grow in 2022: AM Best & GC
According to the latest estimate and forecast for dedicated reinsurance capital from rating agency AM Best and broker Guy Carpenter, overall reinsurance market dedicated capital is expected to shrink, as traditional capacity falls, but ILS or third-party capital rises. While reinsurance capital remains plentiful, according to AM Best’s latest market report, the current forecast is […]
Pakistan minister cites catastrophe bonds as workable climate finance solution
At a recent climate finance focused event, Pakistan’s Minister for Climate Change, Sherry Rehman, called on international governments to place climate finance and losses at the heart of COP 27 talks next year, with catastrophe bonds one instrument seen as having a role. Loss and damage has been a key sticking point in climate talks […]
Visualising higher catastrophe bond pricing, multiples & spreads
In recent months, if you’re interested in insurance-linked securities (ILS) or active in the ILS marketplace, you could not have missed the widely discussed issues of spread widening seen in catastrophe bonds, or the hardening of reinsurance pricing and how that spills over to ILS rates and returns. Cat bond spreads began widening in earnest […]
Capacity is King, as reinsurance becomes precious: Aon
When reinsurance capacity becomes scarce, or less available, as has been seen in Florida and at the mid-year renewals, capacity becomes “King” and those with availability of it are no doubt very popular. Aon’s Reinsurance Solutions described the mid-year renewal dynamics very well in a recent report, saying that capacity is King in Florida, while […]
ARC addresses role of insurance on climate change impacts in Africa
The African Risk Capacity Insurance Company (ARC) has hosted a regional meeting to address the role of insurance in fighting climate change impacts on the African continent. Representatives from ARC member states and funding donor partners met in Malawi to discuss how parametric insurance has the potential to transform how the continent deals with climate-change-induced […]