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 […]
As reinsurance demand rises $5bn+, alternative capacity fills renewal gaps
The alternative capital markets, so insurance-linked securities (ILS) funds, ILS investors and other third-party capital sources, have played an important role at a mid-year reinsurance renewal that saw demand increase in a capacity constrained marketplace. Aon’s Reinsurance Solutions team explained that demand for reinsurance increased at the June and July renewal season. The broker estimates […]
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 […]
Philippines looks to reinsurance & parametrics for crop scheme
The government of the Philippines is said to be looking at sources of reinsurance capital to underpin the Philippine Crop Insurance Corporation (PCIC) scheme, while parametric triggers are also being explored to make the coverage more widely available and responsive. Artemis understands that there is a desire to make the Philippine Crop Insurance Corporation (PCIC) […]
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 […]
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 […]
China’s parametric catastrophe insurance to expand to Henan Province
Henan Province is the latest in China to announce a pilot program for parametric catastrophe insurance, with an initial focus on extreme rainfall and flood coverage. Henan’s local government said that the pilot will allow the region to adopt the parametric catastrophe insurance, with rainfall related triggers for city and municipality covers, as well as […]
Inflation to drive insurance protection gap to new high in 2022: Swiss Re
The global insurance protection gap, or the gap between economic losses and those that are insured, increased again in 2021, reaching a new all-time high of US $1.42 trillion, according to reinsurance giant Swiss Re. The trend is expected to continue in 2022, with Swiss Re warning that the current inflationary environment is expected to […]
Risky business: Three exam questions from the Risk Pool Summit
The Centre for Disaster Protection works on how the international system can better protect people when disasters strike. With years of experimentation and iteration behind them, risk pools are an essential piece of the answer, offering predictable pay-outs for pre-agreed risks like earthquakes and droughts. CCRIF SPC (formerly The Caribbean Catastrophe Risk Financing Facility) has […]