Multi-cat bonds can meet ECIS demand

ORIGINAL PUBLICATION HERE

Multi-cat bonds or other ILS solutions are the only viable solution for coping with natural disasters in the Eastern European and Commonwealth of Independent States region, and Bermuda could have a big role to 
play in making this happen, says Kirill Savrassov, chief executive of Bermuda-based Phoenix CRetro Reinsurance.

The human cost of natural disasters is measured not just in the deaths and injuries they cause, but also in terms of their lasting economic impact on survivors and countries. Natural disasters don’t just destroy homes and fields; they can altogether annihilate years of economic growth.

Cat bond liquidity benefits evident, as ILS funds sell to free up capital

ORIGINAL PUBLICATION HERE

Trading of catastrophe bonds in the secondary market has increased in the last fortnight as some ILS fund holders free up capital in advance of the approaching reinsurance renewals, so the benefits of the liquidity within these the fully securitized instruments becomes evident again.

Cat bonds have repeatedly demonstrated their value as a source of liquidity within an ILS fund portfolio in the past, but this year some insurance-linked securities (ILS) fund managers may find this liquidity even more beneficial.

With ILS funds facing the ongoing impacts of what are in many cases their biggest losses ever, from the 2017 hurricanes, which have been added to by a succession of small to mid-sized catastrophe losses in 2018, having access to some ILS assets that can be transferred and sold is proving extremely beneficial.

Protectionism a “lose-lose situation”: Swiss Re’s Jerome Haegeli

ORIGINAL PUBLICATION HERE

Protectionism is a “lose-lose situation” and its impact on both global reinsurance players and policyholders alike is not positive, according to Swiss Re’s Chief Economist Jerome Haegeli.

In a recent conversation with Reinsurance News Haegeli spoke positively about the current state of the reinsurance market, but warned against the trend of protectionism and its role in what he described as a global economy lacking resilience.

“Our hope is that multilateralism prevails because it means a common set of regulatory rules which are consistent, fair and predictable,” stated Haegeli.

АБР поддерживает усилия Кыргызской Республики по борьбе с изменением климата

ОРИГИНАЛЬНАЯ ПУБЛИКАЦИЯ ЗДЕСЬ

Бишкек, Кыргызская Республика (28 ноября 2018 года) — Азиатский банк развития (АБР) утвердил 38,6 млн. долл. США для финансирования модернизации ирригационных систем, повышения сельскохозяйственного производства и улучшения землепользования, укрепления управления рисками стихийных бедствий и улучшения сбора и анализа соответствующих данных в Кыргызской Республике.

Этот проект, включающий кредит в размере 21,8 млн. долл. США и грант в размере 16,8 млн. долл. США из Азиатского фонда развития АБР, сосредоточится на Ферганской долине в юго-западной части страны и бассейне реки Чу на севере, которые уязвимы к наводнениям, селям и засухам, что усугубляется изменением климата. Софинансирование Правительства Кыргызской Республики составит 5 млн. долл. США.

ADB Supports Kyrgyz Republic’s Efforts to Combat Climate Change

ORIGINAL PUBLICATION HERE

BISHKEK, KYRGYZ REPUBLIC (28 November 2018) — The Asian Development Bank (ADB) has approved $38.6 million in development financing to help modernize irrigation systems, improve agriculture and land management, strengthen disaster risk management, and enhance data collection and analysis in the Kyrgyz Republic.

The project, comprising a $21.8 million loan and a $16.8 million grant from the Asian Development Fund, will focus on the Ferghana Valley in the southwestern part of the country and the Chui River Basin in the north, both of which are vulnerable to flooding, mudflows, and drought exacerbated by climate change. The Government of the Kyrgyz Republic will contribute $5 million to the project.

BDA hails success of London forum

ORIGINAL PUBLICATION HERE

Bermuda’s historic business bonds with London and potential future synergies through fintech and emerging technologies were key themes of a multi-industry forum in London yesterday.

Close to 200 industry professionals from a range of business sectors, from shipping to insurtech, attended the Bermuda Executive Forum held at ME London by the Bermuda Business Development Agency (BDA).

The event, the agency’s fourth overseas forum and second in London over the past year, brought together more than 50 senior industry and regulatory leaders as speakers and panellists to showcase the island as a financial centre of excellence. Presentations and discussions turned the spotlight on investment and business opportunities, and also underscored commonalities shared by the Bermuda and London markets.

One sidecar pulled on lack of investor appetite, others questioned on terms

ORIGINAL PUBLICATION HERE

One collateralised reinsurance sidecar transaction that had been lined up for the January 2019 renewals has been pulled due to a lack of appetite from investors, while at the same time other sidecar arrangements are now being questioned for changes being proposed to their terms, Artemis understands.

It’s shaping up to be a particularly challenging January renewal season for the collateralised reinsurance and insurance-linked securities (ILS) space, after the proliferation of losses over the last two years and the resulting trapping of collateral, ongoing loss uncertainty and loss creep that has been seen.

As we explained earlier this week, there is an expectation that the January 2019 reinsurance renewals will be challenging, potentially late and that capital and losses are going to drive the negotiations, with the market perhaps even set to stop growing as investors and fund managers hold back on fund-raising and deployment.

Beauty or safety? Europe seeks to protect heritage from disasters

ORIGINAL PUBLICATION HERE

ROME, Nov 26 (Thomson Reuters Foundation) – From the floating city of Venice to prehistoric rock carvings in Spain, Europe’s cultural heritage is vulnerable to floods, quakes and wildfires, and requires better protection to preserve it for future generations, officials and researchers said.

Earlier this month, storms in Italy destroyed 14 million trees, caused damage of at least 1 billion euros ($1.14 billion) in the northern Veneto region, and severely flooded Venice.

The storms were a reminder of the “impact of climate change and extreme weather events which we are seeing unfortunately everywhere in Europe now”, said Mami Mizutori, head of the U.N. Office for Disaster Risk Reduction (UNISDR).

1-in-100 year global insured loss now modeled at $271 billion: AIR

ORIGINAL PUBLICATION HERE

The 1% aggregate exceedance probability insured loss (also the 100-year return period loss) from catastrophe events around the globe is now estimated at almost $271 billion by risk modeller AIR Worldwide, the highest level the metric has ever been placed at.

Each year AIR Worldwide reports on global catastrophe exposure and the potential amount of losses that insurance and reinsurance markets could suffer at the main industry metric return periods.

This year, the 1-in-100 year return period loss is pegged at $271 billion, while the 1-in 250 year return period is a huge $342 billion, both the highest levels they have ever been.

At the same time, the modelled global insured average annual loss is estimated at around $86 billion by AIR.

Integrate climate science into catastrophe modelling: Geneva Association

ORIGINAL PUBLICATION HERE

Integration of the latest findings in climate science into catastrophe risk modelling would increase its usefulness to society, while adopting a forward-looking approach involving climate change scenarios would also be beneficial, according to the Geneva Association.

geneva-association-logoIn a report, the Geneva Association highlights that climate science and the ability to look forwards at a range of outcomes based on differing assumptions for climate change and variability, could make catastrophe risk models more broadly useful than just in insurance and reinsurance alone.