China financial regulator continues to promote Hong Kong for catastrophe bonds
China’s National Financial Regulatory Administration (NFRA), the financial industry regulatory agency under the State Council of the People’s Republic, is continuing to promote Hong Kong as a venue for insurers and reinsurers to sponsor catastrophe bonds. Speaking at a conference in Hong Kong this week, Li Yunze, the Chairman of the National Financial Regulatory Administration […]
Schroders Capital invested $817m+ in ILS that help reduce protection gap in 2023
During the full-year 2023, the catastrophe bond and insurance-linked securities (ILS) team at private markets focused investment manager Schroders Capital allocated over US $817 million to transactions that specifically help in reducing the insurance protection gap. Schroders Capital has quantified this area of impact that its cat bond and ILS investment management unit has been […]
UK Gov launches ISPV reform consultation including accelerated cat bond pathway
The UK’s Prudential Regulation Authority (PRA) has now officially launched its consultation on reforms for the insurance special purpose vehicle (ISPV) regulatory regime, which includes the accelerated pathway for certain catastrophe bond applications and a 10-day target for approvals of certain ILS arrangements. The consultation was teased back in September, when we first reported that […]
ILS growth supports sustainable disaster recovery, community resilience: Baillie Gifford
According to James Squires, Head of Multi Asset and Partner at Baillie Gifford, the risk-based premium structure of insurance-linked securities encourages important mitigation and resilience measures by communities, governments, and insurance providers. In a report focusing on the resurgence of the ILS market in recent years, Squires highlighted how this financial instrument can mitigate the […]
For Asia to realise ILS market potential, local investor participation must increase: Fitch
While the Asia region is expected to see steadily increasing activity in catastrophe bonds and other insurance-linked securities (ILS), Fitch Ratings believes the participation of regional investors needs to increase, while continued development of regulatory frameworks and local expertise is also required. Fitch Ratings said that it anticipates, “a gradual increase in insurance-linked securities (ILS) […]
AI-improved risk modelling can streamline catastrophe bond transactions: World Bank
According to executives at the World Bank, artificial intelligence (AI) based improvements to catastrophe risk modelling could in future allow more transactions to be brought to the catastrophe bond market, with less lead time and potentially wider investor acceptance. In a joint report on the matter, the World Bank’s Michael Bennett, Head of Market Solutions […]
ILS: simple, powerful, and accessible for all
“Insurance-linked securities (ILS) offer a good alternative or complement to reinsurance, and nothing complicated,” said Kirill Savrassov, convenor of the ILS Education Programme, lamenting how ILS has often been viewed as a niche product reserved for sophisticated markets or large financial institutions. “For developing countries ILS instruments such as sovereign parametric catastrophe bonds, are often […]
Why educating the industry about ILS is so important
Insurance-linked securities (ILS) have become a vital part of the reinsurance industry, providing alternative capital for risk transfer, allowing investors to access insurance risks through financial markets, spread catastrophe risks and enhance market capacity. The key benefits of ILS are clear: greater diversification for investors, reduced reliance on traditional reinsurance and increased capacity to absorb […]
Hong Kong hopes to kick-start local ILS investment with tax exemption
Recognising that demand for asset and wealth management services are set to increase and that certain alternative asset classes are currently less attractive due to their taxation, the government of Hong Kong aims to boost its investment sector with a broadening of profit tax exemptions, with insurance-linked securities (ILS) one asset class in focus. Hong […]
Alternative capital a material and critical reinsurance partner through crises: Rapin, Nephila
In comments made around Guy Carpenter’s Baden-Baden Reinsurance Symposium event, Maria Rapin, the CEO of Nephila Climate, the climate and weather focused arm of insurance-linked securities (ILS) specialist Nephila Capital, highlighted that alternative capital is a long-term partner for reinsurance that has been well-tested through catastrophes and crises. This year’s theme of the reinsurance broker’s […]