Peru to expand El Niño agricultural catastrophe insurance cover

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The Peruvian government and the Ministry of Agriculture have chosen to expand the country’s El Seguro Agrario Catastrófico (SAC), or the Agricultural Catastrophe Insurance scheme, to include five more regions, with the launch of an international tender, according to reports.

Agriculture in PeruReports in peruthisweek.com underline the recent impact of El Niño on the Peruvian agriculture sector, which led to a number of infrastructure losses and adversely impacted numerous industries, especially the country’s important agricultural sector.

In response to the high volumes of flooding caused by the El Niño weather system, many Peruvian farmers saw their crops destroyed and subsequently lost money, which, absent insurance and reinsurance market protection, reduces the social and economic stability of the Peruvian agricultural sector.

Cat bond returns up year-on-year to 31st March: Aon Securities

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Annual returns for catastrophe bonds rose in the year to 31st March 2017, as evidenced by all of Aon Securities insurance-linked securities (ILS) indices reporting higher performance year-on-year.

The rise in catastrophe bond investment returns has partially been driven by a shift in 2016 towards higher coupons, as can be seen in Artemis’ chart showing the average coupons of issued cat bonds across each year, which has helped many cat bond funds performance over the last 12 to 18 months.

This shift is one factor that has helped to drive returns for the Aon ILS Indices higher, with all four of the indices tracked by the insurance and reinsurance brokers capital markets unit Aon Securities reporting a year-on-year increase in returns, details in the chart below.

Meteo Protect helps French farmers to parametric weather risk transfer

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Weather risk management, risk transfer, pricing, data, broking and structuring firm, Meteo Protect’s weather insurance platform has been launched by the National Union of Potato Producers (UNPT) of France, providing farmers with resilience against climate and weather-related risks.

Potato farmWith the increasing realisation that climate change could be driving more frequent and more severe adverse weather events, farmers in all parts of the world are having to navigate unpredictable crop seasons, in terms of volume, quality and also price.

For potato producers in France the story is no different, and in an effort to minimise the impacts of unseasonal weather on potato crops across France, the UNTP has become the first French agricultural union to offer its members weather insurance.

7 things you need to know about climate risk insurance

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1. Climate risk insurance is a practical and political solution

Climate risk insurance can help protect individuals, small businesses or entire countries from permanent damage caused by the impact of extreme weather events. In the short-term it can reduce the effect of natural disasters and, in the longer term, can contribute to preventive disaster risk reduction.

Opportunity for reinsurance & ILS to support global insurance industry growth

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Improving economic growth in developed and emerging markets is expected to stimulate growth in the global insurance industry by 2018, which, suggests a need for greater reinsurance support and an opportunity for insurance-linked securities (ILS) to continue expanding into new peril regions.

The expectation of global insurance industry growth by 2018, albeit it projected to be slight, comes from reinsurance giant Munich Re. The reinsurer expects to see better economic prospects in the U.S. and emerging countries, which it feels will offset the expectation of insurance industry growth decline in the Chinese marketplace.

Around this time last year Munich Re said that global insurance premium growth would exceed economic growth over the next decade, with much of this growth coming from emerging Asian markets.