Caribbean regional catastrophe bond back on the agenda

ORIGINAL PUBLICATION HERE

Following the devastating impacts of hurricanes Irma and Maria in the Caribbean discussion has once again turned to how to secure an increased amount of parametric disaster risk financing for the region, with a regional catastrophe bond issuance rising up the agenda once again.

Hurricanes Irma and Maria caused complete destruction to a number of Caribbean islands and widespread damage across much of the region, resulting in what is likely to be the largest Caribbean insurance and reinsurance industry loss in history.

Some private ILS lines could see rate increases of 30% or more: Twelve Capital

ORIGINAL PUBLICATION HERE

The insurance-linked securities (ILS) market responded well to recent intense pressure from third-quarter catastrophe events, and there’s an opportunity for ILS players to take advantage of premium increases of up to 30% or higher, according to insurance and reinsurance linked investment specialist manager, Twelve Capital.

In a recent research note on the active 2017 hurricane season, Twelve Capital has said that the private ILS market is likely to experience premium increases of between 10% to 30%, dependent on the line of business, with some niche areas of the private ILS sector seeing rates increase even higher.

Markel CATCo raises $543m for listed Reinsurance Opportunities Fund

ORIGINAL PUBLICATION HERE

Markel CATCo Investment Management Ltd., the collateralized reinsurance and retrocessional investment fund manager, has successfully raised $543 million of new capital from investors for its stock exchange listed retrocession focused CATCo Reinsurance Opportunities Fund.

The news follows a huge $1.8 billion capital raise for Markel CATCo’s private reinsurance and retrocession ILS fund strategies in October and positions the manager with a replenished pool of capacity, ready for deployment at the all-important January renewals.

保险相连证券作为一种资产投资

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保险相连证券作为一种资产投资

巨灾债券(Catastrophe bonds，简写为 CAT bonds)，属于更广泛的保险相连证券 (Insurance Linked Securities，简称 ILS)的类别。ILS 是把保险业的风险转移到资本市场，并由投资者承担相应风险的金融工具。最近随着买家市场和政府机构越来越频繁且广泛的承保巨灾债券，以便紧急救援和重建，防止破坏性事件的发生。在世界银行和联合国的大力支持下，这些举措被视为在宏观层面上重要的解决保障缺口方案。

Modelling cat risk: 25 years since Hurricane Andrew

ORIGINAL PUBLICATION HERE

The understanding and ownership of scientific content will become a focal point of future catastrophe modelling, says Lixin Zeng, chief executive officer of Validus AlphaCat.

Hurricane Andrew in 1992 marked the beginning of the systematic adoption of cat models by the insurance industry. In the past 25 years have come (i) substantial improvements in their quality and coverage; and (ii) an ever-increasing sophistication in how the models are used by insurers, reinsurers, brokers, and capital market investors. This article highlights the latter.

Another large loss year could test ILS permanence: Kurt Karl, Swiss Re

ORIGINAL PUBLICATION HERE

2017 is widely seen as the first real test for the alternative reinsurance capital space, but while the sector is viewed as being resilient and sophisticated, were 2018 to bring losses of a similar magnitude to this year, the permanence of alternative capital could be tested as well, according to Swiss Re’s Kurt Karl.

In light of what’s most likely to be one of the costliest years on record for global insured natural catastrophe losses, Artemis spoke with reinsurance giant Swiss Re’s Chief Economist, Kurt Karl, to discuss what recent events and the changing re/insurance market dynamics might mean for the insurance-linked securities (ILS) space.

World Bank to emulate pandemic facility for famine & other crises

ORIGINAL PUBLICATION HERE

The World Bank actively working to emulate its successful establishment of the Pandemic Emergency Financing Facility (PEF) for other humanitarian crises, such as famine, including the use of financial market risk transfer instruments, such as the pandemic catastrophe bonds and swaps.

With the set up the Pandemic Emergency Financing Facility (PEF) earlier this year, the World Bank tapped into the capital markets appetite for relatively uncorrelated sources of risk as investments, utilising the insurance-linked securities (ILS) market and institutional investors appetite for reinsurance linked assets to provide the risk capital necessary to back the Facility.

Schroder Life ILS strategy launches with $750m of capital

ORIGINAL PUBLICATION HERE

Asset manager Schroders has launched the Schroder Life ILS strategy today, a specialist $750 million fund that will be invested in life insurance and reinsurance linked securities (ILS), aiming to provide its investors with an attractive return from a diversifying asset class.

Schroders with the support of Secquaero Advisors Ltd. believes there is a growing opportunity for capital market investors to tap into life insurance and reinsurance linked returns, seeing a growing life ILS market with an increasing number of opportunities for investment.

The Schroder Life ILS strategy will be run across a number of funds and investment mandates, structured in closed-end vehicles with a 10-year maturity.

Parametric Pacific catastrophe facility upsizes at reinsurance renewal

ORIGINAL PUBLICATION HERE

The World Bank supported Pacific Catastrophe Risk Insurance Company (PCRIC), a parametric disaster and catastrophe insurance captive insurer for the Pacific Island Countries (PIC’s), has renewed its reinsurance protection, growing the risk pool by 18% to $45 million, with the backing of four major reinsurers.

Previously known just as the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI) but now formalised as the captive insurer Pacific Catastrophe Risk Insurance Company (PCRIC) owned by the Pacific Catastrophe Risk Insurance Foundation (PCRIF), the facility provides risk pooling for PIC’s, helping them to secure insurance coverage against tropical cyclones, earthquakes and tsunamis by providing the interface to the global reinsurance markets.