Insurance Linked

What happened to all the hurricanes?


In just two years (2004-2005) the United States experienced seven major hurricanes. In the nine years since then, not one major hurricane has made landfall in the US – the longest gap since records began. In an upcoming paper, NASA’s Dr Tim Hall has calculated that this kind of hurricane ‘drought’ should only happen every 177 years. Has something changed or has the US just been extraordinarily lucky?

With the passing of the quiet 2014 season, it’s now nine years without a major hurricane landfall on the US. The last category three plus strike was Hurricane Wilma in 2005. This length of “drought” is unprecedented in the historic record at least back to 1851. Exactly how rare is such a string of years? What can we conclude from it? And how long on average do we wait to till the next major landfall?

intelligent insurer

A good year: Luca Albertini


Luca Albertini, chief executive officer at Leadenhall Capital Partners, tells Intelligent ILS about the company’s 2015 plans and why he wants to change investors’ attitudes towards unmodelled risks.

In July 2014, re/insurer Amlin increased its stake in investment manager Leadenhall Capital Partners (LCP) from 40 percent to 75 percent, reflecting the growing demand in insurance-linked securities (ILS) from the capital markets.


Life insurers need to diversify assets, include alternatives like ILS: Study


A study undertaken by Conning alongside the American Council of Life Insurers (ACLI) found that life insurance companies could look to invest in alternative asset classes such as ILS as a way to add diversification, while reducing sensitivity to interest rates.

The study captured the concerns of 50 U.S. life insurance CEO’s who highlighted their primary concerns as the declining investment income and the need for capital appreciation that life insurance and reinsurance companies face.