Cat bonds one of the most prominent innovations in sustainable finance: IMF
According to a staff climate paper published by the International Monetary Fund (IMF), catastrophe bonds are one of “the most prominent innovations in the field of sustainable finance in the last 15 years,” but the organisation believes more use of them is needed to cover burgeoning catastrophe and climate risks. Catastrophe bonds sit alongside green […]
Munich Re: Natural disaster review for first half of 2022
In the first half of 2022, natural disasters caused overall losses of US$ 65bn, with slightly more than half of these insured Extreme multi-day rainfall and severe flooding in Australia constituted the main loss burden for the insurance industry of at least US$ 3.7bn US once again country with highest weather-related losses Number of fatalities […]
Cat models don’t properly reflect climate change: RenRe CEO O’Donnell
In comments made this afternoon during the second-quarter earnings call of Bermuda based reinsurance and third-party capital management specialist RenaissanceRe, the companies CEO Kevin O’Donnell said the catastrophe modelling vendors are failing to robustly capture the effects of climate change. O’Donnell’s comments suggest a lack of confidence in the commercially available vendor catastrophe models at […]
Global Insurance-Linked Securities Market Outlook
The Insurance-Linked Securities (ILS) market ended another year on a high note as the annual new issuance record was broken once again. This milestone was achieved in spite of a challenging year of catastrophe losses and with most market participants working from home. The ILS market continues to demonstrate its resilience with bonds issued in […]
Crypto crash may push re/insurers to add new exclusions
The cryptocurrency price crash could accelerate the process of insurers rewriting policies to reduce potential exposure, according to the law firm RPC. The company says insurers are likely to review or amend policy wordings to ensure they are not indirectly insuring losses arising from the activity of clients who may have exposure to the crypto market. […]
No oversupply of ILS capital expected, as returns come into focus: JPM
There is unlikely to be an oversupply of alternative reinsurance capital or insurance-linked securities (ILS) capacity in the near-term, as the ILS segment of the re/insurance industry focuses on delivering returns to its investors, according to analysts at J.P. Morgan. In a new report, equity analysts from investment bank J.P. Morgan explain that they regularly […]
Fitch Withdraws 3 Belarusian Insurers’ Ratings
Fitch Ratings – London – 13 Jul 2022: Fitch Ratings has withdrawn three Belarusian insurers’ Insurer Financial Strength (IFS) Ratings. A full list of rating actions is below. Fitch is withdrawing the IFS Ratings, as the agency no longer has access to sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings […]
Disaster Risk Financing could help to mitigate climate risk in Africa
Only three percent of losses caused by drought, floods and tropical cyclones have been insured on the African continent. This emerged at a recent DZ BANK Capital Markets Conference held in Berlin. Insured losses on the African continent are close to 97 percent, which means, at best, only three percent of losses caused by drought, floods […]
As reinsurance demand rises $5bn+, alternative capacity fills renewal gaps
The alternative capital markets, so insurance-linked securities (ILS) funds, ILS investors and other third-party capital sources, have played an important role at a mid-year reinsurance renewal that saw demand increase in a capacity constrained marketplace. Aon’s Reinsurance Solutions team explained that demand for reinsurance increased at the June and July renewal season. The broker estimates […]
Novel cat bonds on the horizon: Brad Adderley, Appleby
On the back of a robust opening quarter, catastrophe bond issuance remained strong in the second-quarter of 2022, and with interest from new sponsors with novel transactions, growth could be on the horizon, according to Brad Adderley. “We have done a fair amount of cat bonds in Q2, and we have not had any transactions […]