IRB Re gets first ILS structure in Brazil approved by regulator
The Brazilian insurance regulator, Superintendence of Private Insurance (SUSEP), has approved the country’s first insurance-linked securities (ILS) structure, Andrina, sponsored by IRB Re. The authorisation allows Andrina Sociedade Seguradora de Propósito Específico, or Andrina Special Purpose Insurance Company, to issue Letra de Risco de Seguro (Insurance Risk Letters), the designated term for insurance-linked notes in […]
Brazil aligning ILS approach with global standards to transform catastrophe coverage
Speaking at a Fitch Ratings event on the development of insurance-linked securities (ILS) in Brazil, Rodrigo Botti, former CFO of IRB and former CEO of Terra Brasis, emphasised a domestic market-first approach, with no intention of competing with other established ILS hubs. According to Botti, the ILS approach taken by Brazil focuses on aligning regulations […]
Talanx: Parametric Maschpark cat bond augments Chile quake reinsurance as exposure grows
Having recently secured its debut catastrophe bond, the $100 million Maschpark Re Ltd. (Series 2024-1) parametric earthquake issuance, German re/insurance group Talanx has said that the protection augments its need for reinsurance and to cover earthquake risks in Chile as its business grows. As we began reporting on November 7th, Talanx AG, the German insurance and reinsurance group, […]
World Bank supports Eastern Caribbean on cat swap, cat bonds, more parametric cover
The World Bank is working with four countries from the Organization of Eastern Caribbean States Commission (OECS), Dominica, Grenada, Saint Lucia, and Saint Vincent and the Grenadines, to strengthen their climate resilience and with three risk transfer options being explored, a catastrophe swap, catastrophe bonds, or securing more parametric insurance. The World Bank notes that […]
Cat bonds have emerged as a socially responsible investment: Man Group
The stable return profile of catastrophe bonds and their historically low correlation with broader financial markets have traditionally been the main reasons investors considered an allocation of cat bonds into their portfolio, however, more recently, investors have started recognising catastrophe bonds for their social impact, as per a new report from the Man Group. According […]
China’s untapped personal & health insurance market to unlock growth opportunities: BCG
China’s personal insurance sector is predicted to grow in the range of 5% to 10% by 2035, a potential expansion primarily driven by the relatively untapped market for pension and health insurance in the country, according to a recent report by BCG. With an ageing population, increased health awareness post-COVID, and a prevailing low interest […]
Cat bond demand and spreads expected to remain elevated: Twelve Capital
Specialist investment manager Twelve Capital has said that it anticipates the increased demand for catastrophe bonds to persist and that while market spreads may compress somewhat, they are expected to remain elevated by historical standards. Commenting on the 2024 Atlantic hurricane season that is now drawing towards its official close, Twelve Capital explained that while […]
China financial regulator continues to promote Hong Kong for catastrophe bonds
China’s National Financial Regulatory Administration (NFRA), the financial industry regulatory agency under the State Council of the People’s Republic, is continuing to promote Hong Kong as a venue for insurers and reinsurers to sponsor catastrophe bonds. Speaking at a conference in Hong Kong this week, Li Yunze, the Chairman of the National Financial Regulatory Administration […]
APRA’s proposed lowering of reinstatement requirements favourable for ILS: Fitch
According to Fitch Ratings, the proposal from the Australian Prudential Regulation Authority (APRA) to remove the requirement for reinsurance arrangements to have a reinstatement in place could be a favourable move for the insurance-linked securities (ILS) market, allowing more risk to be transferred to investors from Australia’s insurance sector. As we reported earlier this month, […]
Schroders Capital invested $817m+ in ILS that help reduce protection gap in 2023
During the full-year 2023, the catastrophe bond and insurance-linked securities (ILS) team at private markets focused investment manager Schroders Capital allocated over US $817 million to transactions that specifically help in reducing the insurance protection gap. Schroders Capital has quantified this area of impact that its cat bond and ILS investment management unit has been […]