A new paper authored by Sayuri Shirai, ADBI Fellow at the Asian Development Bank Institute (ADBI), explores how banks can utilise catastrophe bonds and puts forward an interesting suggestion, that as sponsors or co-sponsors, banks could bundle the climate exposure from their other assets into cat bonds to hedge against
The increasing diversity of risk transfer instruments and reinsurance capital sources, including insurance-linked securities (ILS), is a credit positive for the U.S. property and casualty (P&C) insurance sector that faces an evolving risk landscape and rising secondary peril losses, according to rating agency KBRA. Insurance markets faced by severe and
Global pension funds are increasingly eyeing the insurance-linked securities market looking for higher yields and portfolio diversification, sparking talk of a new wave of institutional capital that could reshape the sector. However, industry experts said that educating these investors on ILS would also be key to making the influx work.
The Australian Prudential Regulation Authority is moving forward with its process to ease access to alternative reinsurance solutions in the country, including insurance-linked securities (ILS), with one updated proposal now being to remove the requirement for a reinstatement completely for instruments like catastrophe bonds. As we reported back in November 2024,
The African Risk Capacity (ARC) Group, a provider of parametric disaster insurance products to countries and other entities in Africa, has made a combined parametric insurance payout of just over $5.4 million to support Mozambique’s response to the 2024/25 drought and to Tropical Cyclone Chido. According to the announcement, the
Irrespective of lower claims experience over the last year in natural catastrophe reinsurance business, Hannover Re’s German subsidiary E+S Rückversicherung AG has said that it expects demand for property catastrophe reinsurance will continue to rise, while insurance-linked securities (ILS) business is also seen as an area of opportunity for the
The UCITS catastrophe bond fund sector has continued to expand through the latest quarter of record, adding more than 3% in assets under management across the group of 17 UCITS cat bond funds, to reach a new high of almost $17.73 billion after September 2025. Year-to-date, to the end of
The reinsurance market is expected to remain “in a phase of transition and recalibration”, remaining fundamentally healthy heading into 2026, said Robert Ali, Active Re’s Chief Operating Officer, in a recent interview with Reinsurance News. After a period of hardening, the market has evolved into a more balanced environment in
As per a survey by Moody’s Ratings, over the next year, reinsurance buyers have indicated a strong preference for catastrophe bonds when it comes to utilising alternative capital, while insurance-linked securities (ILS) funds are expected to see increased demand too. Each year in advance of the annual Monte Carlo Rendez-Vous