Disaster Risk Financing could help to mitigate climate risk in Africa
Only three percent of losses caused by drought, floods and tropical cyclones have been insured on the African continent. This emerged at a recent DZ BANK Capital Markets Conference held in Berlin. Insured losses on the African continent are close to 97 percent, which means, at best, only three percent of losses caused by drought, floods […]
Cat bonds on-track to match records in 2022, fresh capital expected: Aon
Mid-way through 2022, the market for catastrophe bonds is on-track to match the record levels of issuance seen in 2021, according to insurance and reinsurance broker Aon. Demand for catastrophe bonds from established insurance-linked securities (ILS) funds and investors continues to outstrip supply in the market in recent weeks, Aon’s Reinsurance Solutions division explained. “Insurers […]
Novel cat bonds on the horizon: Brad Adderley, Appleby
On the back of a robust opening quarter, catastrophe bond issuance remained strong in the second-quarter of 2022, and with interest from new sponsors with novel transactions, growth could be on the horizon, according to Brad Adderley. “We have done a fair amount of cat bonds in Q2, and we have not had any transactions […]
“Demand for catastrophe bonds outpacing industry’s ability to meet them” – Aon
Aon’s latest Reinsurance Market Dynamics: June and July Reinsurance Renewals says that the current demand for catastrophe bonds is outpacing the ability of the industry to supply them. According to the report, the current situation has arisen because insurers and reinsurers have turned increasingly to alternative capital markets to supplement traditional reinsurance and maximise placements in a […]
Diversification pays off for some catastrophe bond funds
Some catastrophe bond funds have been able to moderate the impacts of broadly widening spreads through their diversification in recent weeks, with diversifying perils and regions experiencing less significant widening on outstanding cat bonds, so delivering better returns in May and June. We’ve been documenting the spread widening seen across the catastrophe bond market in […]
UCITS catastrophe bond funds see sluggish growth through H1
The assets under management (AUM) of the main UCITS catastrophe bond funds as a group only rose by 1.2% through the first-half of 2022, which goes some way to explain the restricted capacity of recent months. Having expanded rapidly from AUM of just under $5 billion at the end of April 2020, to more than $8 […]
Gallagher Re – Africa Re initiative may bring third-party capital to African risks
A new collaborative initiative between global reinsurance broker Gallagher Re and pan-African reinsurer Africa Re aims to strengthen countries against a broad range of climate, crisis and disaster risks and may utilise third-party reinsurance capital alongside traditional to augment capacity. The pair announced their protection gap focused initiative named ‘Accelerating action through scalable risk transfer […]
Catastrophe bond market hits new record size of $38.2bn
The global market for catastrophe bonds expanded by almost 2% during the second-quarter of 2022, as demand from sponsors drove strong issuance and helped to grow the outstanding cat bond market to $38.2 billion at June 30th 2022. Issuance of new catastrophe bonds reached $5.2 billion in the second-quarter of the year. You can download […]
Swiss ILS fund managers collaborating on ESG transparency
Artemis has learned that a group of Switzerland-based insurance-linked securities (ILS) investment fund managers have been collaborating to develop a data transparency proposal to help enhance environmental, social and governance (ESG) in the ILS market. After what we understand to be a few months of work, an initial ESG data request file template has now […]
Cat bond issuance strong in first half: Moody’s
Catastrophe bond issuance remained buoyant in the first half of this year, with $7.7 billion in new issuance following a record year in 2021, according to a report released Friday by Moody’s Investors Service Inc. Activity is expected to be robust for the remainder of 2022, Moody’s said. First-quarter new issuance totaled $3.2 billion, the […]