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 […]

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 […]

Cat bond investment yields to stay at record levels: Twelve Capital’s Steiger

After hurricane Ian, it’s likely spread widening already seen in the catastrophe bond market only gets wider, which means, alongside rising risk-free returns, cat bond investment yields are set to stay at record levels, Florian Steiger of Twelve Capital has said. In fact, with insurance-linked securities (ILS) market and wider reinsurance market capital set to […]

Cat bond investment yields to stay at record levels: Twelve Capital’s Steiger

After hurricane Ian, it’s likely spread widening already seen in the catastrophe bond market only gets wider, which means, alongside rising risk-free returns, cat bond investment yields are set to stay at record levels, Florian Steiger of Twelve Capital has said. In fact, with insurance-linked securities (ILS) market and wider reinsurance market capital set to […]

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 […]

Hannover Re to benefit from opportunities in ILS & Asia: Jefferies

Analysts at Jefferies have asserted that Hannover Re is set to benefit from opportunities in areas of change that it has embraced to a greater extent than many peers, including the hard market environment, ILS markets, Asian growth and even IFRS 17. In terms of innovation, Jefferies notes that Hannover Re has proactively embraced the […]

Twelve Capital warns of “potentially significant” aggregate cat bond erosion from Ian

After hurricane Ian, there is the potential for “significant” erosion to aggregate catastrophe bonds, according to investment manager Twelve Capital. In its latest update on major hurricane Ian, Twelve Capital, the Zurich-headquartered insurance-linked securities (ILS) and reinsurance linked fund manager, said that it is now working off a range of industry loss estimates from $50 […]

AM Best flags uncertainties for Sub-Saharan reinsurance market

Analysts at AM Best have flagged a host of uncertainties that may impede the near-term prospects of the reinsurance market in Sub-Saharan Africa (SSA), despite its significant expansion over the past decade. The rating agency notes that gross written premium in the SSA reinsurance market has grown at a 10-year compound annual growth rate of […]

Building resilience to climate change is of paramount importance in Africa: ARC

Ahead of COP27, the African Risk Capacity (ARC) outlines the importance of parametric insurance on the African continent, highlighting the need for further collaboration with more developed nations. ARC provides parametric insurance services to African Union member states and farmer organisations to pool disaster-related risk across Africa and transfer it to international risk markets. Since […]