Cat models don’t properly reflect climate change: RenRe CEO O’Donnell
In comments made this afternoon during the second-quarter earnings call of Bermuda based reinsurance and third-party capital management specialist RenaissanceRe, the companies CEO Kevin O’Donnell said the catastrophe modelling vendors are failing to robustly capture the effects of climate change. O’Donnell’s comments suggest a lack of confidence in the commercially available vendor catastrophe models at […]
Most ILS funds interested in cyber risk as deal experience grows: PCS
The majority of insurance-linked securities (ILS) fund managers are interested in cyber re/insurance risk and are free from mandates prohibiting engagement, suggesting the ILS space is “quite ready to consume more cyber insurance risk,” according to Tom Johansmeyer, Head of PCS. A recent survey conducted by PCS, a Verisk business, sought to gauge ILS fund […]
Flood risk routinely underestimated, warns Marsh & McLennan Company (MMC)
Re/insurance broker Marsh McLennan has released its updated Flood Risk Index 2.0, which maps how a changing climate will shape flood risk in the future. The report warns that flooding is the most pervasive natural disaster, and yet its costs are routinely underestimated. And now, climate change, economic and demographic trends, and a chronic shortfall […]
UK Disaster Protection Centre: Humanitarian Insurance: Weighing the Options
Through the previous blogs in this series, we have started to unpick the role for risk transfer in a humanitarian context, and raised some of the ethical, practical, and principle-based reasons why humanitarian actors might think twice before using risk transfer tools like insurance [1]. The obvious next question for humanitarian actors and donors is […]
VP Bank says ILS has “good prospects”, more overweight ILS than other assets
Liechtenstein-based private bank VP Bank AG has told its clients it currently sees “good prospects” for investing into insurance-linked securities (ILS), with catastrophe bonds seen as a positive diversifying addition to portfolios. VP Bank undertakes asset management and investment consultant activities for private and institutional investors, recommending opportunities including funds, or managing portfolios on their […]
Global Insurance-Linked Securities Market Outlook
The Insurance-Linked Securities (ILS) market ended another year on a high note as the annual new issuance record was broken once again. This milestone was achieved in spite of a challenging year of catastrophe losses and with most market participants working from home. The ILS market continues to demonstrate its resilience with bonds issued in […]
Crypto crash may push re/insurers to add new exclusions
The cryptocurrency price crash could accelerate the process of insurers rewriting policies to reduce potential exposure, according to the law firm RPC. The company says insurers are likely to review or amend policy wordings to ensure they are not indirectly insuring losses arising from the activity of clients who may have exposure to the crypto market. […]
Caribbean regional cat bond planned with World Bank support
Work is underway to develop a catastrophe bond for the Caribbean region with the support of the World Bank, with four countries currently engaged and as many as four others thought likely to join the effort. The initiative hopes to have a multi-country or regional Caribbean catastrophe bond ready for market by the time Jamaica’s […]
Climate change a far greater threat to global economy than Covid-19 pandemic amid rising intensity of heatwaves and floods, Swiss Re says
Climate change poses a bigger risk to long-term global economic growth than the ongoing Covid-19 pandemic, according to Swiss Re. The world just had the third warmest June on record last month, with the average temperature 0.32 degrees Celsius higher than the average for the month in the three decades to 2020, according to Europe’s […]
Egypt’s financial regulator looks to insurance-linked securities (ILS)
The financial regulator in Egypt has become the latest government entity to look to implementation of an insurance-linked securities (ILS) framework within the country. Egypt already has insurance and some reinsurance activity going on within the country, but insurance-linked securities (ILS) are relatively unknown and a new concept to its market. Despite that, the Financial […]