TWIA Board wary of cat bond costs in 2023. Targets $2.92bn reinsurance
Members of the Board of the Texas Windstorm Insurance Association (TWIA) expressed concerns over the potential cost of catastrophe bond coverage in 2023, having an expiring $400 million cat bond it wants to renew as part of a target to buy up to $2.92 billion of reinsurance for the coming storm season. TWIA’s Board met […]
California earthquake to cause $600m of economic loss in Humboldt County: RMSI
According to global GIS and geospatial technology company, RMSI, a 6.4 magnitude earthquake that jolted the northern coast of California near Ferndale on 20 December is set to cause $600 million of economic loss in Humboldt County. RMSI states that the earthquake occurred in the vicinity of the Mendocino triple junction, where the Pacific, North […]
Risk Pool CEO Global Risk Dialogue
Securing access to financial resources before a disaster strikes through sovereign catastrophe risk pools allows countries to respond quickly to disasters and reduce their impact on people and their livelihoods. Risk Pools like ARC Ltd., CCRIF, PCRIC and SEADRIF are an innovative DRM mechanism enabling countries to pool risks in a diversified portfolio and transfer […]
Swapping Debt for Climate or Nature Pledges Can Help Fund Resilience
Countries that are most vulnerable to climate change—and the associated loss of natural biodiversity—are often those least able to afford investment to strengthen resilience because their budgets are burdened by debt. Such countries face a high risk of fiscal crisis, IMF staff research shows. Debt-for-climate swaps and debt-for-nature swaps seek to free up fiscal resources so that […]
IMF: Swapping Debt for Climate or Nature Pledges Can Help Fund Resilience
Innovative debt swaps can help governments that have limited access to traditional grants or debt relief Countries that are most vulnerable to climate change—and the associated loss of natural biodiversity—are often those least able to afford investment to strengthen resilience because their budgets are burdened by debt. Such countries face a high risk of fiscal […]
Howden CEO predicts $2bn of private-funded disaster insurance capacity over next five years
A new article by David Howden, founder and CEO of the Howden Group, says that forecasts that $2bn of private funded disaster insurance capacity can be delivered in the next few years. Writing on LinkedIn, Howden said that he believes that this extra capacity can be delivered within the next three-to-five years. In his article, […]
Risk pools ARC, CCRIF and PCRIC agree to partnership at COP27
Global risk pools African Risk Capacity Limited (ARC Ltd.), CCRIF SPC (formerly The Caribbean Catastrophe Risk Insurance Facility) and Pacific Catastrophe Risk Insurance Company (PCRIC) have agreed to a partnership at the recent COP27 climate conference. The parties signed a memorandum of understanding (MOU) on the sidelines of COP27 in Sharm el Sheikh, Egypt to […]
COP27: World Bank to launch Global Shield Financing Facility (GS-FF)
At the COP27 climate change conference in the coming days, the World Bank is set to announce the launch of the Global Shield Financing Facility (GS-FF), which will be an important new financing structure to channel capital to protect vulnerable nations against climate and disaster risks. Details are limited right now, but from what we […]
Investors in Insurance-Linked Securities (ILS) Are Seeking Innovation and Improve Disaster Relief
Investors in ILS are seeking innovation—they may find it in Africa where a combination of transnational bodies, better data and a desire to structure improved disaster relief could combine with new ILS domiciles. Contents: A growing pipeline of risks could soon be transferred Investors used World Bank bonds as a diversification traditional capital Why 97% […]
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 […]
