Hong Kong Insurance Authority: Decoding Premium Financing and its Risks

What is Premium Financing? Premium financing is an insurance funding arrangement whereby a policy holder borrows funds from a financial institution (usually a bank) to pay the premium of a new insurance policy, and in doing so, assigns all or part of the rights under the proposed policy as collateral to the financial institution. In […]

Singapore’s capital market focus for re/insurance development continues

The government of Singapore continues to look to the capital markets to push the boundaries in developing its insurance and reinsurance market, with an ambition to further develop the ability of the sector to tap capital market appetite for risk. In revealing a new growth strategy for the Singapore financial services industry, the Monetary Authority […]

Investment volatility to constrain China Re earnings: S&P

Analysts at S&P Global Ratings have warned that investment market volatility will constrain China Reinsurance (Group) Corp.’s earnings, potentially eating into its capital buffer and potentially eclipsing the progress it has made in overhauling its underwriting. The rating agency notes that China Re is more susceptible to credit and market risks than its international peers […]

Asia-Pacific reinsurers can use ILS capital to compete with global peers: AM Best

Reinsurance companies in the Asia Pacific region can leverage insurance-linked securities (ILS) and alternative capital to capture hardening market opportunities and become more competitive with their global peers, rating agency AM Best has advised. Alternative capital and insurance-linked securities (ILS) can help to make regional reinsurers more competitive in their home countries and also globally, […]

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 […]

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 […]

Asia Insurance Review: Hybrid solutions for China’s natural catastrophes

Even as countries across the globe grapple with climate change, alternate risk transfer mechanisms like parametric solutions are emerging as the best option. Phoenix CRetro Reinsurance’s Mr Kirill Savrassov and Tenax Capital’s Mr Toby Pughe spoke with Asia Insurance Review. By Anoop Khanna According to a PwC report published in May 2022, the insurance protection gap could reach $1.86tn by 2025 and […]

Cat bonds one of the most prominent innovations in sustainable finance: IMF

According to a staff climate paper published by the International Monetary Fund (IMF), catastrophe bonds are one of “the most prominent innovations in the field of sustainable finance in the last 15 years,” but the organisation believes more use of them is needed to cover burgeoning catastrophe and climate risks. Catastrophe bonds sit alongside green […]

Munich Re: Natural disaster review for first half of 2022

In the first half of 2022, natural disasters caused overall losses of US$ 65bn, with slightly more than half of these insured Extreme multi-day rainfall and severe flooding in Australia constituted the main loss burden for the insurance industry of at least US$ 3.7bn US once again country with highest weather-related losses Number of fatalities […]