ILS: simple, powerful, and accessible for all
“Insurance-linked securities (ILS) offer a good alternative or complement to reinsurance, and nothing complicated,” said Kirill Savrassov, convenor of the ILS Education Programme, lamenting how ILS has often been viewed as a niche product reserved for sophisticated markets or large financial institutions. “For developing countries ILS instruments such as sovereign parametric catastrophe bonds, are often […]
Why educating the industry about ILS is so important
Insurance-linked securities (ILS) have become a vital part of the reinsurance industry, providing alternative capital for risk transfer, allowing investors to access insurance risks through financial markets, spread catastrophe risks and enhance market capacity. The key benefits of ILS are clear: greater diversification for investors, reduced reliance on traditional reinsurance and increased capacity to absorb […]
UK PRA to consult on ISPV reforms, launch accelerated catastrophe bond pathway
The United Kingdom Bank of England’s Prudential Regulation Authority (PRA) expects to launch a consultation into its insurance special purpose vehicle (ISPV) regulatory regime, including introducing a new, accelerated pathway for catastrophe bond applications and a 10-day target for approvals. The moves are designed to enhance the regulatory environment for use of ISPV’s for insurance-linked […]
China’s State Council sees cat bonds as measure to strengthen insurance system
China is aiming to strengthen its insurance system, with a particular focus on the impacts of weather and natural disasters and its State Council, a key ruling body, has cited catastrophe bonds again, as one measure that can assist. Over the years, China’s State Council has repeatedly cited innovative risk transfer, alternative reinsurance capital and […]
First ILS structure in Brazil could be Andrina Seguros from IRB RE
The first insurance-linked securities (ILS) structure under Brazil’s regulations for “Letra de Risco de Seguro”, or LRS which translates to Letter of Insurance Risk, could be named Andrina Seguros and sponsored by local reinsurance company IRB RE, according to a report. Brazil has designed its legislative and regulatory framework with domestic market activity first in […]
ILS industry responds to ESMA call for evidence on cat bonds as UCITS eligible assets
The insurance-linked securities (ILS) industry has come together to respond to the European Securities & Markets Authority (ESMA) call for evidence to support a review of the Undertakings for Collective Investment in Transferable Securities (UCITS) Eligible Assets Directive (EAD), highlighting the reasons catastrophe bonds are beneficial assets for investors and suitable assets for UCITS strategies. […]
Jamaica’s Dr. Nigel Clarke proposed as IMF Deputy Managing Director
Dr. Nigel Clarke, the Minister of Finance of Jamaica and the driver of that country’s multi-layered approach to disaster risk financing that includes the first catastrophe bond for a small-island state has been proposed to become a Deputy Managing Director of the International Monetary Fund (IMF). Kristalina Georgieva, Managing Director of the IMF, announced her […]
Germany’s nat cat insurance coverage delayed due to political disagreement: AM Best
According to an AM Best commentary, the debate over Germany’s compulsory natural catastrophe coverage is hindered by the absence of political agreement between federal states and the central government. AM Best’s report titled, “Political Consensus the Missing Ingredient for German Natural Catastrophe Solution,” highlights that, following the 2021 flooding in Southern Germany, there have been […]
World Bank & EC call for scaled up European disaster risk transfer & cat bonds
In a string of research reports, the World Bank Group and European Commission call on governments across Europe to utilise more in the way of disaster risk transfer and insurance to reduce the pressure from weather and natural perils on budgets, including the use of catastrophe bonds to access capital market investors for reinsurance risk […]
London market ILS platform still seen as lagging: LMG report
While the London insurance and reinsurance market has been growing it is being outpaced by other markets and insurance-linked securities (ILS) is again highlighted as an area of opportunity where results have lagged ambitions and there remains work to do, the London Market Group’s latest report makes clear. While London and the United Kingdom spent […]
