Investors in Insurance-Linked Securities (ILS) Are Seeking Innovation and Improve Disaster Relief
Investors in ILS are seeking innovation—they may find it in Africa where a combination of transnational bodies, better data and a desire to structure improved disaster relief could combine with new ILS domiciles. Contents: A growing pipeline of risks could soon be transferred Investors used World Bank bonds as a diversification traditional capital Why 97% […]
Parametric Catastrophe Bonds and Alternate Risk Transfer Mechanisms for China’s Market
Even as countries across the globe grapple with climate change, alternate risk transfer mechanisms like parametric solutions are emerging as the best option. A parametric transaction uses the physical characteristics of a catastrophe event as the trigger. A catastrophe bond (CAT) is a high-yield debt instrument that is designed to raise money for companies in […]
Only scratching surface with respect to cat bonds: World Bank Treasurer
When it comes to the use of catastrophe bonds in disaster risk financing, so far we’re only “scratching the surface”, in terms of what can be done using the cat bond structure, according to Jorge Familiar, Vice President and Treasurer of the World Bank. Jorge Familiar has worked at the World Bank for over 16 […]
Parametric insurance gains momentum in Africa, but more to do: ARC’s Ndlovu
Parametric insurance products are slowly gaining momentum in Africa, but according to Lesley Ndlovu, CEO of the African Risk Capacity (ARC) Group’s insurer, Arc Ltd., more countries need to embrace parametric risk transfer, especially as Africa tries to fight the effects of climate change. ARC Ltd. now provides parametric insurance to 35 sovereign member states […]
Only scratching surface with respect to cat bonds: World Bank Treasurer
When it comes to the use of catastrophe bonds in disaster risk financing, so far we’re only “scratching the surface”, in terms of what can be done using the cat bond structure, according to Jorge Familiar, Vice President and Treasurer of the World Bank. Jorge Familiar has worked at the World Bank for over 16 […]
CCRIF made $15.2m in parametric payouts through 2022 hurricane season
The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility) has made US $15.2 million in pay-outs to members after hydro-meteorological events that took place during the 2022 hurricane season. While there were no payouts after hurricane Ian, the most impactful event to the insurance, reinsurance and insurance-linked securities (ILS) industry of this […]
World Bank leadership put catastrophe bonds back in the spotlight
While the World Bank has been a key driving force in the catastrophe bond market for many years, of late its senior leadership has been relatively quiet about the use of cat bonds as a key disaster risk financing and risk transfer option for its sovereign client-base. So it’s pleasing to note that catastrophe bonds […]
Barbados embeds parametric nat cat clause in sovereign bond issue
The Caribbean island nation of Barbados is one of the first in the world we’ve heard of to embed a parametric natural catastrophe event trigger within a sovereign bond issuance, with the occurrence of a natural disaster able to trigger a deferral of payments to holders of the dollar-denominated bond. Interestingly, Barbados has elected to […]
Hong Kong to step up ILS ecosystem promotional efforts
Hong Kong’s Insurance Authority (IA) is set to increase its efforts to promote its nascent insurance-linked securities (ILS) framework and attract more catastrophe bond or ILS issuance activity to the country. The Insurance Authority (IA) has been promoting Hong Kong’s ILS framework for a number of years now, with two catastrophe bonds issued there so […]
In a turbulent world, we must securitize resilience: UNDP’s Kellett & Stander
Given the challenges faced in an increasingly volatile and turbulent world, insurance and risk finance are key tools that can help to shift the balance of risk, while insurance-linked securities (ILS) can “securitize resilience”, according to United Nations Development Programme (UNDP) representatives. The UNDP published its Human Development Report today, with social insurance against future […]