Parametric insurance can help close US $1.8tn protection gap: Generali and UNDP
A joint report published by insurance giant Generali and the United Nations Development Programme (UNDP) highlights parametric risk transfer and insurance as a key solution that can help to close the US $1.8 trillion protection gap. “Parametric insurance is speeding up recovery from climate-related hazards and other shock events, especially for communities in vulnerable contexts,” […]
Beazley adds $290m cyber ILW to its $510m cyber cat bonds, in $1bn cyber cat coverage
While it has been growing its cyber underwriting business, specialist insurer Beazley has also implemented a robust hedging strategy to control the tail, recently securing a $290 million cyber industry loss warranty (ILW) cover and securing its third PoleStar Re cyber catastrophe bond. As Artemis reported a few weeks ago, Beazley secured $210 million in cyber […]
China’s State Council sees cat bonds as measure to strengthen insurance system
China is aiming to strengthen its insurance system, with a particular focus on the impacts of weather and natural disasters and its State Council, a key ruling body, has cited catastrophe bonds again, as one measure that can assist. Over the years, China’s State Council has repeatedly cited innovative risk transfer, alternative reinsurance capital and […]
Private ILS interest rising, enhances scope of investment options: Grandi, Twelve Capital
Interest in private ILS opportunities, so collateralised reinsurance and retrocession arrangements, has been rising and continues to, Marcel Grandi of Twelve Capital believes. He also thinks these instruments afford an investment manager more scope, in terms of investment options beyond catastrophe bonds and tailoring portfolios. Marcel Grandi, Head of ILS Sourcing at Zurich-headquartered insurance-linked securities […]
ILS a versatile, adaptable midfield player offering strong, reliable returns: WTW
Insurance-linked securities (ILS) such as catastrophe bonds are seen as a versatile and adaptable diversifying strategy that can can provide investors strong, reliable return potential, particularly on a risk-adjusted basis, the Liquid Diversifiers team at WTW has said. Likening the construction of a well-rounded investment portfolio to that of selecting a winning football team, the […]
Central Europe floods could drive insured losses up to $3.3bn, says Gallagher Re
Insured losses from the recent severe floods that struck central Europe, which mainly occurred from September 12-15 are likely to range between EUR 2.0 – 3.0 billion (USD 2.2 – 3.3 billion), according to estimates from reinsurance broker Gallagher Re. A slow-moving low-pressure system caused continuous rainfall across central Europe, leading to severe and costly […]
First ILS structure in Brazil could be Andrina Seguros from IRB RE
The first insurance-linked securities (ILS) structure under Brazil’s regulations for “Letra de Risco de Seguro”, or LRS which translates to Letter of Insurance Risk, could be named Andrina Seguros and sponsored by local reinsurance company IRB RE, according to a report. Brazil has designed its legislative and regulatory framework with domestic market activity first in […]
ILS industry responds to ESMA call for evidence on cat bonds as UCITS eligible assets
The insurance-linked securities (ILS) industry has come together to respond to the European Securities & Markets Authority (ESMA) call for evidence to support a review of the Undertakings for Collective Investment in Transferable Securities (UCITS) Eligible Assets Directive (EAD), highlighting the reasons catastrophe bonds are beneficial assets for investors and suitable assets for UCITS strategies. […]
Cat bonds and sidecars to see biggest increases in demand over next year: Moody’s
Over the next year, reinsurance buyers have expressed a strong preference for catastrophe bonds when it comes to utilising alternative capital, while sidecars are also expected to see much more elevated demand, the latest survey by Moody’s Ratings shows. Each year just in advance of the Monte Carlo Rendez-Vous event, Moody’s Ratings surveys reinsurance buyers […]
Retro strategy differs for Big Four. Cyber cat bonds could be something they all agree on
While the retrocession strategies of Europe’s Big Four reinsurance companies may differ, the still relatively new retro option of sponsoring cyber catastrophe bonds may prove to be an area of commonality between them. It is AM Best that highlights the differences between the retrocession strategies of the four major European reinsurance giants, Hannover Re, Munich […]