Cat bonds, parametrics & risk pools can narrow nat cat protection gap: G20 South Africa event

Bridging the widening natural catastrophe insurance protection gap is part of building macro financial resilience, which calls for innovative solutions such as catastrophe bonds, parametric instruments and regional risk pools, according to Lesetja Kganyago, Governor of the South African Reserve Bank. The G20 South African Presidency, in collaboration with the International Association of Insurance Supervisors […]

Federal Catastrophe Reinsurance bill resurrected, cat bond support still highlighted

Legislation that calls for a Federal Catastrophe Reinsurance Program to be established has been resurrected in the United States Senate, with more support this time around and still a section of the INSURE Act highlighting the importance of capital markets alternatives to reinsurance, such as catastrophe bonds. The INSURE Act, or the Incorporating National Support […]

UK Gov confirms new cat bond, ISPV timelines. Launches new consultation to enhance ILS regime

The Government of the United Kingdom has confirmed new authorisation targets for new insurance special purpose vehicle (ISPV) applications, as well as a 10-day target for certain insurance-linked securities (ILS) arrangements, while also launching a new consultation on a more flexible and extended risk transformation regime. As we reported back in November 2024, the UK’s Prudential […]

UK Government confirms plans for captive insurance regime

In the wake of a consultation on the creation of a captive regime in the UK, the UK Government, working closely with the financial regulators, has announced that it intends to proceed with the introduction of a new UK captive insurance framework. The government’s view is that a new captive insurance framework will help cement […]

BIS: Incorporating physical climate risks into banks’ credit risk models

Summary Focus The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, has agreed to prioritise further analysis on the financial risk implications of extreme weather events and tasked the Basel Committee with analysing the impact of such events on financial risks. However, a […]

ESMA conceptually takes view cat bonds may sit better under a new AIF wrapper framework

Regulator and supervisor the European Securities and Markets Authority (ESMA) has now published its awaited advice to the European Commission (EC) on its review of the UCITS Eligible Assets Directive (EAD), in which it says its conceptual view is that some alternative assets such as catastrophe bonds may sit better under a different framework than […]

Hong Kong government eyes new incentives to cement catastrophe bond hub ambitions

The government of Hong Kong is weighing additional incentives to attract more catastrophe bond issuers and investors, following its second annual insurance-linked securities (ILS) conference aimed at promoting the city as a global hub for alternative risk transfer, according to a recent article from South China Morning Post. “Hong Kong is the best investment hub […]

IRB (Re) sponsors first ILS in Brazil, R$33.7m Andrina surety bond risk securitization

The first ever insurance-linked securities (ILS) issuance in Brazil has been completed today, as local reinsurance firm IRB (Re) sponsored the issuance of a R$33.7 million deal to securitize surety bond risks, using its Andrina Special Purpose Insurance Entity (SSPE). IRB (Re) had what was the first insurance-linked securities (ILS) structure authorised in Brazil by […]