Swiss Re backs first county-level parametric catastrophe insurance in China

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Reinsurance firm Swiss Re continues to expand its parametric risk transfer activities, this time with the launch and backing of the first county-level natural catastrophe index insurance product in China.

Swiss Re is backing and reinsuring a county-level index insurance cover for Mao County in Sichuan province, Financial News reported, the first parametric product to drop-down to the county level of coverage in China.

Swiss Re has previously backed province level parametric or index insurance products covering China catastrophe events (such as in Guangdong), but as data sources improve and become more granular and technology advances, the coverage can be calibrated to a smaller regional level.

PGGM & PFZW say ILS is a Sustainable Development Investment

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Insurance-linked securities (ILS) and insurance-linked investments (ILI) in general have been identified as an example of a Sustainable Development Investment, according to experienced ILS investors Dutch pension fund manager PGGM and pension PFZW.

As insurance-linked securities (ILS) and instruments such as catastrophe bonds provide risk capital that responds to the occurrence of catastrophes and natural disasters, providing much-needed financing and liquidity when the worst happens, they are increasingly being viewed as an example of a socially and environmentally responsible asset class.

In fact, the ILS market provides products which offer social benefits to society, by taking on peak risks to support provision of insurance and paying out to help in financing recovery, but also environmental benefits, by helping to build resilience to disasters and climate change.

Panama joins CCRIF, buys parametric rainfall cover

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The CCRIF SPC (formerly named the Caribbean Catastrophe Risk Insurance Facility) has expanded its parametric risk pool to include Panama, as the Central American country joins the provider of parametric sovereign disaster risk transfer products and signs up for excess rainfall protection.

The CCRIF is a multi-country risk pool, providing parametric disaster insurance at the sovereign level for perils including earthquakes, hurricanes and extreme rainfall events, and tapping the reinsurance and capital market for risk pool support.

The facility has been steadily growing and with Panama now signed up CCRIF has two Central American members and a risk pool that now includes exposures from 21 countries (19 from the Caribbean).

Parametric water-level insurance launched in Europe by Swiss Re

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Commercial risk transfer and corporate insurance solutions provider Swiss Re Corporate Solutions has launched a new parametric product designed to protect European companies that are exposed to high or low water levels.

A division of the global reinsurance firm Swiss Re, Swiss Re Corporate Solutions increasingly offers tailored parametric insurance products to clients, as it seeks to leverage technology and data analytics to provide responsive risk transfer solutions.

This latest parametric insurance product launch sees Swiss Re targeting European commercial insurance buyers that seek to protect their companies against risks that arise due to either high or low water levels.

African Risk Capacity (ARC) Agency and African Development Bank (AFDB) increase accessibility to Climate Risk insurance for Africa

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Through partnership and innovative financing, ARC and AfDB are tackling one of the biggest challenges in closing the protection gap in Africa: premium financing.

In January 2017, the ARC and AfDB partnered to improve disaster risk financing infrastructure, capacities, and policies across the continent by harnessing the financial expertise, in-country reach, and dedication to building a climate resilient Africa of both institutions

On 26 October 2018, AfDB approved the Africa Disaster Risk Financing Programme (ADRiFi), an initiative that will assist African governments in overcoming one of the largest impediments in fully benefitting from ARC’s risk management tools: premium financing.

Insurers gear up to grapple with the impact of climate change

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The earth’s climate could be changing faster than first thought – and definitely faster than insurers would like. This presents great challenges to the industry which needs to address them quickly, Intelligent Insurer discovers.

Scientists have warned for some time that rising air and sea temperatures could mean an increase in the frequency and severity of natural catastrophes.

Re/insurers have always paid close attention so such ideas, and any related research, as they could be particularly hard hit by such developments, both on the asset as well as on the liability side of their balance sheets.