Cat bond investment yields to stay at record levels: Twelve Capital’s Steiger
After hurricane Ian, it’s likely spread widening already seen in the catastrophe bond market only gets wider, which means, alongside rising risk-free returns, cat bond investment yields are set to stay at record levels, Florian Steiger of Twelve Capital has said. In fact, with insurance-linked securities (ILS) market and wider reinsurance market capital set to […]
In a turbulent world, we must securitize resilience: UNDP’s Kellett & Stander
Given the challenges faced in an increasingly volatile and turbulent world, insurance and risk finance are key tools that can help to shift the balance of risk, while insurance-linked securities (ILS) can “securitize resilience”, according to United Nations Development Programme (UNDP) representatives. The UNDP published its Human Development Report today, with social insurance against future […]
Hannover Re to benefit from opportunities in ILS & Asia: Jefferies
Analysts at Jefferies have asserted that Hannover Re is set to benefit from opportunities in areas of change that it has embraced to a greater extent than many peers, including the hard market environment, ILS markets, Asian growth and even IFRS 17. In terms of innovation, Jefferies notes that Hannover Re has proactively embraced the […]
Twelve Capital warns of “potentially significant” aggregate cat bond erosion from Ian
After hurricane Ian, there is the potential for “significant” erosion to aggregate catastrophe bonds, according to investment manager Twelve Capital. In its latest update on major hurricane Ian, Twelve Capital, the Zurich-headquartered insurance-linked securities (ILS) and reinsurance linked fund manager, said that it is now working off a range of industry loss estimates from $50 […]
AM Best flags uncertainties for Sub-Saharan reinsurance market
Analysts at AM Best have flagged a host of uncertainties that may impede the near-term prospects of the reinsurance market in Sub-Saharan Africa (SSA), despite its significant expansion over the past decade. The rating agency notes that gross written premium in the SSA reinsurance market has grown at a 10-year compound annual growth rate of […]
Building resilience to climate change is of paramount importance in Africa: ARC
Ahead of COP27, the African Risk Capacity (ARC) outlines the importance of parametric insurance on the African continent, highlighting the need for further collaboration with more developed nations. ARC provides parametric insurance services to African Union member states and farmer organisations to pool disaster-related risk across Africa and transfer it to international risk markets. Since […]
Summer 2022 cohort of our course has passed the qualification exam
Our sincere congratulations to the 4th cohort: Timothy Nielander, Shib Shankar Saha, Suguru Fujita, Richard Griffiths, Dewald Cillie, on obtaining “Certified ILS specialist” qualification with impressive average pass ratio of 92% at the exam. Kirill & Toby
Hong Kong Insurance Authority: Decoding Premium Financing and its Risks
What is Premium Financing? Premium financing is an insurance funding arrangement whereby a policy holder borrows funds from a financial institution (usually a bank) to pay the premium of a new insurance policy, and in doing so, assigns all or part of the rights under the proposed policy as collateral to the financial institution. In […]
ILS managers with stable, deployable capital well-positioned
Two factors are currently being looked on very favourably by any institutional investors that are researching the insurance-linked securities (ILS) asset class, the stability of an ILS investment managers’ assets over recent years, and importantly how the amount that was actually deployable has fluctuated. End-investors we’ve spoken with, that are looking to either make their […]
Focus on the ‘resilience gap’
The industry should talk about the ‘resilience gap’ rather than the protection gap, says UN Development Program advisor Daniel Stander. The insurance industry will never be able to entirely close the protection gap—and the same is true for the public sector. That’s why the United Nations Development Program’s (UNDP) senior advisor Daniel Stander believes the […]