UK ILS reforms more likely to take activity from other jurisdictions than generate net-new: Fitch
The recently announced consultation on reforming the United Kingdom’s insurance-linked securities (ILS) risk transfer regulations is more likely to result in activity being taken by the UK that would have been booked in other jurisdictions, than to generate net-new ILS business, commentary from Fitch Ratings states. Fitch has commented on the UK government proposals to […]
Issuance of multi-country cat bonds can help Southeast Asia manage disaster costs: OECD
A recent paper authored by Kensuke Molnar-Tanaka, OECD Development Centre and Yang-Che Wu, Feng Chia University explores how the issuance of multi-country catastrophe bonds can enhance disaster cost management in Southeast Asia. The study, titled “Disaster risk-sharing pools and multi-country catastrophe bonds in Southeast Asia” highlights how many countries across Southeast Asia are prone to disasters and […]
Debut cat bond key for Flood Re to “respond to the consequences of global climate risks”
Flood Re, the state-backed flood reinsurance pool in the United Kingdom, saw its entry to the insurance-linked securities (ILS) market with its debut catastrophe bond this year as key for it to “respond to the consequences of global climate risks” as it grapples with rising risks. Flood Re sees itself as “more than a reinsurance […]
UK Gov confirms new cat bond, ISPV timelines. Launches new consultation to enhance ILS regime
The Government of the United Kingdom has confirmed new authorisation targets for new insurance special purpose vehicle (ISPV) applications, as well as a 10-day target for certain insurance-linked securities (ILS) arrangements, while also launching a new consultation on a more flexible and extended risk transformation regime. As we reported back in November 2024, the UK’s Prudential […]
UK Government confirms plans for captive insurance regime
In the wake of a consultation on the creation of a captive regime in the UK, the UK Government, working closely with the financial regulators, has announced that it intends to proceed with the introduction of a new UK captive insurance framework. The government’s view is that a new captive insurance framework will help cement […]
BIS: Incorporating physical climate risks into banks’ credit risk models
Summary Focus The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, has agreed to prioritise further analysis on the financial risk implications of extreme weather events and tasked the Basel Committee with analysing the impact of such events on financial risks. However, a […]
Cat bond pricing in neutral zone, with 8.5% expected return in sight for 2025: Lane Financial
Catastrophe bond pricing remains firmly in the “neutral zone” according to the latest analysis from consultancy Lane Financial LLC, but the firm maintains its prediction that the market is still on-track for an expected 8.5% total return in 2025. Lane Financial had forecast earlier this year after Q1 that catastrophe bonds had the potential to deliver […]
Catastrophe bond issuance breaks annual record already in 2025 at over $17.8bn
Catastrophe bond issuance has already beaten the headline annual record in 2025, as new deals have taken the figure to over $17.8 billion, beating last year’s record and putting the $20 billion milestone clearly in sight, according to Artemis’ data on the market. The record for annual catastrophe bond issuance, by Artemis’ data, fell at the […]
Cat bond yields rise above 11%, discount margin to decrease through wind season: Plenum
The overall yield of the catastrophe bond market increased to above the 11% mark in June 2025, the first time it has surpassed that level since October 2024, but with the hurricane season now underway the expectation is for the discount margin to decrease, according to cat bond fund manager Plenum Investments. Catastrophe bond market yields reached […]
World Bank panel highlights ‘astronomical growth’ of cat bond market
The catastrophe bond market is undergoing a dramatic transformation, marked by record-breaking growth, expanding risk coverage, and rising global participation. These themes were explored by industry leaders during a panel session at the World Bank’s Innovating for Impact: Scaling Outcome Bonds and Catastrophe Bonds event in Luxembourg. Moderated by Alexandre Delacroix, Executive Director at reinsurance broker Gallagher […]