Aon places parametric cover for Puerto Rico designed to lower FEMA insurance obligation
Global insurance and reinsurance broker Aon has completed a hurricane and earthquake parametric insurance program for the Government of Puerto Rico, designed to lower the region’s insurance obligation to the U.S. Federal Emergency Management Agency (FEMA). This “historic” parametric program provides the island with diversified hurricane and earthquakes protection, and is the single largest government-sponsored […]
ILS capital to hit $150bn in 2030, but reinsurance to outpace it: Berenberg
Insurance-linked securities (ILS), or alternative, capital is expected to grow to become a $150 billion market by 2030, but traditional reinsurance capital is expected to grow at a faster pace over the same period, according to an estimate from analysts at investment bank Berenberg. Recently, insurance and reinsurance broker Aon said that alternative reinsurance capital, […]
For ILS funds, the challenge is not raising too much capital: Vickers, Gallagher Re
While conditions are attractive for insurance-linked securities (ILS) markets right now and as a result ILS fund returns have been impressive, James Vickers, Chairman International, Reinsurance, at Gallagher Re cautioned that managers must be careful not to raise too much new capital. ILS fund managers are experiencing increasing demand from investors, while investor interest is […]
86% of catastrophe and natural disaster losses in APAC uninsured in 2022: Aon
Insurance and reinsurance broker Aon’s recently published Weather, Climate and Catastrophe Report: Asia Pacific Insights, identifies global natural disaster and climate trends in the region, highlighting a large protection gap in the region. The report reveals that natural disasters in the Asia Pacific (APAC) region in 2022 caused $80 billion in economic losses, of which […]
Alternative reinsurance capital grows to new $100bn high: Aon
According to the latest data from insurance and reinsurance broker Aon, alternative reinsurance capital, largely deployed in insurance-linked securities (ILS) formats, has resumed growth and reached a new high of $100 billion. The catastrophe bond market has been the main contributor to insurance-linked securities (ILS) market growth through the start of 2023, the broker explained. […]
86% of catastrophe and natural disaster losses in APAC uninsured in 2022: Aon
Insurance and reinsurance broker Aon’s recently published Weather, Climate and Catastrophe Report: Asia Pacific Insights, identifies global natural disaster and climate trends in the region, highlighting a large protection gap in the region. The report reveals that natural disasters in the Asia Pacific (APAC) region in 2022 caused $80 billion in economic losses, of which […]
An Italian cat bond “would be snapped up”, says Tenax Capital’s Figna
Speaking to a local Italian daily newspaper, Massimo Figna, founder and CEO of hedge fund manager Tenax Capital, explained that with insurance penetration extremely low, Italy would benefit from the use of catastrophe bonds, which he believes investors would “snap up.” Tenax Capital is a London-based investment manager that Figna founded and it offers a […]
Alternative capital raises accelerate to ~$11bn YTD, says Berenberg
Having only a few weeks ago estimated that as much as $8 billion of alternative reinsurance and insurance-linked securities (ILS) capital had been raised year-to-date, analysts from investment bank Berenberg have now upped that amount to ~$11 billion. As a result, the analysts now believe that alternative and ILS capital flows into the insurance and […]
Star Group weather derivative pays out again on warm 2023 winter
US energy company Star Group (formerly Star Gas Partners) has benefitted from its weather derivative arrangements again in the first-quarter of 2023, recording a full recovery under the terms of the degree day contract it has in place. Star Group has been utilising weather derivatives to hedge risk for well over a decade, benefiting from […]
Bloomberg: Hong Kong’s catastrophe bond market can reach $2 billion by 2025
Hong Kong’s catastrophe bond market may grow to $2 billion by 2025, accounting for 4-5% of global cat bonds, according to a poll conducted at Bloomberg’s Insurance Forum. Authorities recently extended a grant program in a bid promote the city as a regional hub for insurance-linked securities, a $40 billion market dominated by Bermuda. FULL […]