Alternative reinsurance capital grows to new $100bn high: Aon
Catastrophes and natural disasters in the Asia Pacific (APAC) region amounted to a total economic loss of $80 bn. A substantial protection gap (the difference between total economic losses and what’s covered by insurance) of 86% meant many disaster losses were uninsured, according to Aon’s Weather, Climate and Catastrophe Insight Report. Contents: APAC Natural Disaster Economic Losses Summary […]
Swiss Re cat bond Index delivers highest half-year return ever at 10.34%
Thanks to a very strong first-half of investment returns from the catastrophe bond market, the Swiss Re cat bond Index, probably the most widely used benchmark in the insurance-linked securities (ILS) space, has delivered a record performance for any half-year on record. The Swiss Re catastrophe bond Index provides a widely used benchmark for the […]
Resolute and Nayms partner on crypto-denominated industry loss warranty (ILW)
Resolute Global Partners, the insurance and reinsurance linked asset manager, has partnered with insurtech Nayms to bring to market the first industry loss warranty (ILW) to be denominated in a cryptocurrency. Nayms, which operates a regulated Bermuda based marketplace for crypto insurance, said the crypto-denominated industry loss warranty (ILW) was issued through a segregated account […]
Aon places parametric cover for Puerto Rico designed to lower FEMA insurance obligation
Global insurance and reinsurance broker Aon has completed a hurricane and earthquake parametric insurance program for the Government of Puerto Rico, designed to lower the region’s insurance obligation to the U.S. Federal Emergency Management Agency (FEMA). This “historic” parametric program provides the island with diversified hurricane and earthquakes protection, and is the single largest government-sponsored […]
ILS capital to hit $150bn in 2030, but reinsurance to outpace it: Berenberg
Insurance-linked securities (ILS), or alternative, capital is expected to grow to become a $150 billion market by 2030, but traditional reinsurance capital is expected to grow at a faster pace over the same period, according to an estimate from analysts at investment bank Berenberg. Recently, insurance and reinsurance broker Aon said that alternative reinsurance capital, […]
Cat bonds still the main source of ILS market growth: Aon Securities
While the insurance-linked securities (ILS) market is now beginning to see broader growth resuming, with some successful capital raises across private ILS and collateralized reinsurance, the catastrophe bond market is still leading the way as the main source of ILS market growth in 2023, Aon Securities’ latest data shows. The broker issued its latest reinsurance […]
Private ILS fund returns accelerate in May, beat cat bonds for first time in 2023
The returns of private ILS funds, so those that invest in privately transacted insurance-linked securities (ILS) including collateralised reinsurance and retrocession, have outpaced pure catastrophe bond funds for the first time this year in May 2023. This is according to the Eurekahedge ILS Advisers Index, which reported an average ILS fund return of 1.17% for […]
Turkey earthquake industry insured loss estimated at $5bn by CRESTA
The insurance and reinsurance industry loss estimate for the Kahramanmaras Earthquake Sequence that struck Turkey and Syria in February 2023 has been pegged at $5 billion by CRESTA, making it the largest international insured catastrophe loss event of 2023 so far. Remember that CRESTA does not cover catastrophe industry losses in the United States, hence […]
For ILS funds, the challenge is not raising too much capital: Vickers, Gallagher Re
While conditions are attractive for insurance-linked securities (ILS) markets right now and as a result ILS fund returns have been impressive, James Vickers, Chairman International, Reinsurance, at Gallagher Re cautioned that managers must be careful not to raise too much new capital. ILS fund managers are experiencing increasing demand from investors, while investor interest is […]
CCRIF members get EU subsidy to help with 2023 premiums
The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility), has announced a further US $4.7 million in funding from the European Union which will help to subsidise the parametric disaster insurance of its member countries through the 2023 policy year. With the latest US $4.7 million to support the 12 ODA-eligible Caribbean […]