TWIA will look to renew cat bonds early, due to reinsurance market conditions
The Board of the Texas Windstorm Insurance Association (TWIA) is being urged to enter the catastrophe bond market and plan for a renewal of expiring Alamo Re notes sooner than normal, as market conditions could make the placement more challenging. TWIA’s reinsurance broker Gallagher Re has urged the Board of the residual market insurance entity […]
CEA gets $305m of quake reinsurance with Ursa Re II 2022-2 cat bond
Having struggled in placing reinsurance in October and feeling that the January renewals could be a further challenge, the California Earthquake Authority (CEA) has successfully sponsored the largest catastrophe bond issue since hurricane Ian struck, securing a new $305 million Ursa Re II Ltd. (Series 2022-2) deal. This placement of a significant $305 million transaction at a time […]
ILW opportunity is there, if industry takes advantage of it: Johansmeyer, PCS
For industry loss warranty (ILW) markets opportunities are plentiful heading into 2023, but it’s up to the industry to take advantage of it as more concepts are expected to continue to gain traction, according to Tom Johansmeyer, Head of PCS, Verisk Insurance Solutions. “There’s plenty of opportunity, but the real question is whether the industry […]
Huge opportunity for ILS market to influence the next evolution: Artex Capital Solutions CEO Faries
The current re/insurance market dislocation provides a unique opportunity for the insurance-linked securities (ILS) space to influence the development of a more sustainable industry for the benefit of all parties, according to Kathleen Faries, Chief Executive Officer (CEO), Artex Capital Solutions. Artemis spoke with Faries ahead of the January 1st, 2023, reinsurance renewals, which she […]
Renewals: 40% risk-adjusted rate increases not enough for some markets
Reinsurance renewal negotiations continue, but we’re told some placement proposals delivered for market feedback are receiving short-shrift, with carriers’ pushing back and asking for more rate. We’ve now heard from sources about a number of cases where reinsurance program renewals are getting sent back, with brokers and cedents being asked to sharpen their pencils, on […]
SCOR to adapt retrocession to reflect market appetite & cat exposure for 2023
For global reinsurance company SCOR, 2022 saw the company adding new quota share sidecar capacity from third-party investors to its retrocession program, as it looked to add more diversification to its retro capital sources, while strengthening its retro protection. SCOR has always been a relatively significant buyer of retrocessional reinsurance protection, with its program usually […]
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 […]
Parametric Covers Are Finally Gaining Traction. Here’s How Companies Can Benefit
Parametric solutions are gaining in popularity, especially for businesses in the crosshairs of natural catastrophe risk. The traditional insurance model insures against specific losses, but in recent years, another model, parametric insurance, has been picking up steam. “Parametric insurance, sometimes also referred to as index-based insurance, is an insurance product that offers a predefined payout based […]
What is the impact of climate change on insurers
The climate crisis will have dramatic impacts on economies and business communities, but the insurance industry could change the narrative through an innovative attitude to coverage. By Arup Chatterjee Principal Financial Sector Specialist, Sustainable Development and Climate Change Department at Asian Development Bank As time wears on, it’s becoming clear that failure to address the […]