No oversupply of ILS capital expected, as returns come into focus: JPM
There is unlikely to be an oversupply of alternative reinsurance capital or insurance-linked securities (ILS) capacity in the near-term, as the ILS segment of the re/insurance industry focuses on delivering returns to its investors, according to analysts at J.P. Morgan. In a new report, equity analysts from investment bank J.P. Morgan explain that they regularly […]
Swiss ILS fund ESG initiative can drive desired change: Piemonte, BKC
The environmental, social and governance (ESG) transparency initiative being undertaken by a leading group of Swiss-based insurance-linked securities (ILS) investment fund managers, has the potential to drive the desired change investors such as the Bank für Kirche und Caritas have been looking for, according to Tommy Piemonte. Piemonte is the Head of Sustainable Investment Research at […]
Fitch Withdraws 3 Belarusian Insurers’ Ratings
Fitch Ratings – London – 13 Jul 2022: Fitch Ratings has withdrawn three Belarusian insurers’ Insurer Financial Strength (IFS) Ratings. A full list of rating actions is below. Fitch is withdrawing the IFS Ratings, as the agency no longer has access to sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings […]
Humanitarian insurance – ethical tightropes, trade-offs and unintended consequences
Insurance can be a useful tool for managing the unpredictable costs of disasters. This seems a good fit for a sector whose core business is responding to the human impacts of disasters, and often struggles to find the resources to meet unexpected peaks in demand. But humanitarians have a number of particularities linked to their […]
Disaster Risk Financing could help to mitigate climate risk in Africa
Only three percent of losses caused by drought, floods and tropical cyclones have been insured on the African continent. This emerged at a recent DZ BANK Capital Markets Conference held in Berlin. Insured losses on the African continent are close to 97 percent, which means, at best, only three percent of losses caused by drought, floods […]
As reinsurance demand rises $5bn+, alternative capacity fills renewal gaps
The alternative capital markets, so insurance-linked securities (ILS) funds, ILS investors and other third-party capital sources, have played an important role at a mid-year reinsurance renewal that saw demand increase in a capacity constrained marketplace. Aon’s Reinsurance Solutions team explained that demand for reinsurance increased at the June and July renewal season. The broker estimates […]
Cat bonds on-track to match records in 2022, fresh capital expected: Aon
Mid-way through 2022, the market for catastrophe bonds is on-track to match the record levels of issuance seen in 2021, according to insurance and reinsurance broker Aon. Demand for catastrophe bonds from established insurance-linked securities (ILS) funds and investors continues to outstrip supply in the market in recent weeks, Aon’s Reinsurance Solutions division explained. “Insurers […]
Madagascar gets ARC parametric drought insurance payout as well
The country of Madagascar is the latest to benefit from a payout under its parametric drought insurance coverage from the African Risk Capacity (ARC), with almost $800k to be disbursed to the government. The African Risk Capacity Group and the African Development Bank presented the Government of Madagascar with a US $797,049 cheque as an […]
Novel cat bonds on the horizon: Brad Adderley, Appleby
On the back of a robust opening quarter, catastrophe bond issuance remained strong in the second-quarter of 2022, and with interest from new sponsors with novel transactions, growth could be on the horizon, according to Brad Adderley. “We have done a fair amount of cat bonds in Q2, and we have not had any transactions […]
PRA’s work on UK ILS market continues with consultation on ISPVs
As the UK’s top regulator, the Prudential Regulatory Authority (PRA), looks to further evolve the UK insurance-linked securities (ILS) regime, it’s outlined some proposed changes to the authorisation and supervision of insurance special purpose vehicles (ISPVs). In a recently published consultation paper, the PRA notes that since the launch of the HM Treasury’s Risk Transformation […]