ILS fees can be a “significant contributor” to reinsurers earnings: Moody’s

Insurance-linked securities (ILS) related fee income and profit shares can become a “significant contributor” to the earnings of insurance and reinsurance firms that manage third-party capital, according to rating agency Moody’s. While the vast majority of reinsurers already leverage alternative capital and insurance-linked securities (ILS) within their retrocession arrangements, some have gone further to integrate […]

World Economic Forum: How catastrophe bonds help manage the risk of climate change

Extreme weather events around the world are on the rise as a consequence of climate change. The market in catastrophe bonds could grow to $50 billion by the end of 2025. Insurers use the securities to shield themselves against losses from consequences of climate change such as natural disasters. Wildfires, hail storms and a deep […]