Red Cross volcano cat bond issuance recognised for ESG credentials

The first parametric catastrophe bond covering pure volcanic eruption risk, which was brought to market by Replexus and Howden Capital Markets and for the Danish Red Cross has been recognised for its environmental, social and governance (ESG) credentials.

The Guernsey International Insurance Association (GIIA) has awarded its first environmental, social and governance (ESG) accreditation to an insurance entity and that entity is the Dunant Re IC Limited incorporated cell of Replexus ICC (Guernsey) Limited, the issuer of the volcano catastrophe bond earlier this year.

Operated and arranged by Cedric Edmonds, Founder and Director at Replexus ICC, while managed by Aon Insurance Managers (Guernsey), the vehicle has been recognised thanks to being the home to the first humanitarian catastrophe bond issuance.

FULL ORIGINAL PUBLICATION HERE

Mexico struck by M7.0 quake. World Bank cat bond appears safe

A magnitude 7.0 earthquake has struck the Pacific coast of Mexico close to the tourist heavy area of Acapulco. At this stage, it appears the World Bank facilitated IBRD / FONDEN 2020 parametric catastrophe bond that provides the Mexican government with earthquake insurance protection is safe from loss, but it is hard to be certain on the limited information available to us.

The $485 million 2020 issued IBRD / FONDEN catastrophe bond provides risk capital to support Mexico’s FONDEN natural disaster fund, via reinsurance agreements with Mexican government-owned insurer Agroasemex S.A.

Two tranches of the cat bond notes issued for the FONDEN 2020 deal are exposed to earthquake risks, providing $235 million of earthquake insurance protection, on a parametric trigger basis.

FULL ORIGINAL PUBLICATION HERE

CCRIF makes $2.4m parametric rainfall payout to Trinidad & Tobago

The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility), has made a US $2.4 million payout to Trinidad & Tobago after the Caribbean nations parametric excess rainfall insurance policy was triggered recently.

Including this latest payout, the CCRIF’s parametric disaster insurance policies have now paid out 54 times, amounting to $245 million paid out to 16 of its 23 members, with all payouts made within 14 days of the event occurring.

The Government of Trinidad and Tobago has received this latest payout after a heavy rainfall event that occurred during August 18-20, 2021 triggered its excess rainfall policies parametrics.

FULL ORIGINAL PUBLICATION HERE

Weather disasters drive US $ 3.64 trillion in losses in 50 years: WMO data

The high costs of weather disasters around the globe is truly laid bare by the latest data from the World Meteorological Organization (WMO), which estimates that weather, climate and water related disasters drove some US$ 3.64 trillion in losses over the last 50 years.

The WMO’s latest Atlas of Mortality and Economic Losses from Weather, Climate and Water Extremes covers the period from 1970 to 2019, during which over 2 million lives were lost to these disasters.

That is from more than 11,000 reported disasters recorded, and during the period the research found that weather, climate and water hazards accounted for 50% of all disasters, 45% of all reported deaths and 74% of all reported economic losses, while more than 91% of these deaths occurred in developing countries.

FULL ORIGINAL PUBLICATION HERE

Cat bond not a “handout”, Jamaica aims to renew by itself: Minister

The fact foreign donors paid for the premiums associated with Jamaica’s first catastrophe bond does not mean it was a “handout” the country’s Minister of Finance has explained.

Jamaica’s first catastrophe bond, the recently placed IBRD CAR 130 transaction, was priced and saw the Caribbean island nation securing the upsized target of $185 million of coverage last week.

Helping Jamaica to access disaster insurance from the capital markets were the World Bank and its Treasury, which facilitated the transaction and worked on the deal for around three years.

FULL ORIGINAL PUBLICATION HERE

Jamaica’s cat bond priced at upsized $185m, ILS funds take 66% of notes

Jamaica’s first catastrophe bond, the IBRD CAR 130 transaction, has now been successfully priced and the Caribbean island nation has secured the upsized target of $185 million of coverage, with pricing closer to the upper-end of guidance.

Dedicated insurance-linked securities (ILS) investment funds took the lions share of the cat bond notes on offer, absorbing 66% of the arrangement, the World Bank reported.

As we reported recently here, the first catastrophe bond for Jamaica looked set to increase a little in size, from the original offering of $175 million of notes.

FULL ORIGINAL PUBLICATION HERE

Jamaica’s World Bank catastrophe bond could upsize to $185m

The first catastrophe bond for Jamaica, which as we were first to report ten days ago launched as a $175 million IBRD CAR 130 transaction with the support of the World Bank, is now said by our sources to have a chance of closing a little larger, at $185 million in size.

The $175 million or greater catastrophe bond seeks a capital markets backed source of named tropical storm and hurricane disaster insurance protection for the government of Jamaica, on a parametric trigger basis.

As we’d also reported recently, important grant agreements had been signed and as a result the first catastrophe bond for Jamaica was expected imminently.

That proved correct, when our sources told us the deal had been launched to investors ten days ago and we reported on the structure being offered and the protection it will afford to Jamaica’s government.

FULL ORIGINAL PUBLICATION HERE

China’s government supportive of Hong Kong’s ILS strategy: ILS Asia 2021

As options to issue insurance-linked securities (ILS) and catastrophe bonds expand in Asia, with the introduction of Hong Kong as a regulated ILS platform, attendees at our virtual ILS Asia 2021 conference this morning heard of the support China’s government is offering to the initiative.

Our virtual ILS Asia 2021 conference, held in association with headline sponsor AM RE Syndicate Inc., began today with a keynote interview with Mr. Simon Lam, Executive Director, General Business at the Hong Kong Insurance Authority.

This interview can now be viewed on-demand here.

Hong Kong already has an established insurance and reinsurance market, while its legislative preparations for ILS were completed at the beginning of 2021.

FULL ORIGINAL PUBLICATION HERE

Jamaica’s first cat bond launched at $175m by World Bank IBRD

The first catastrophe bond to benefit the Caribbean island nation of Jamaica has now been launched to investors, with the IBRD CAR 130 transaction, that is being issued via the World Bank, set to provide the Government with a $175 million or greater source of named tropical storm and hurricane disaster insurance protection.

We learned recently that important grant agreements had been signed and as a result the first catastrophe bond for Jamaica was imminent and could come to market as early as this week.

That has proved accurate and now the World Bank’s cat bond for Jamaica is in the market and details are with the insurance-linked securities (ILS) investment community, as well as other institutional investors we’d expect.

FULL ORIGINAL PUBLICATION HERE

UZBEKISTAN: UNDP helps develop the insurance sector in Uzbekistan

UNDP, together with the Agency for the Insurance Market Development at the Uzbek Ministry of Finance, organized a seminar on June 24, 2021, during which the results of the diagnostics of the development of inclusive insurance and risk financing in Uzbekistan were presented, UzDaily.uz reports.

It was noted that due to the vulnerability of Uzbekistan to natural disasters, which can bring devastating consequences for the economy and the population, as well as the insufficient development of the insurance market and the lack of tools for inclusive insurance and risk financing, the government, enterprises, and households of the country suffer financial losses amounting to millions of USD.

UNDP established a special Risk Insurance and Financing Fund (Mechanism) to provide technical assistance to countries participating in the climate risk insurance program, including Uzbekistan, to develop inclusive insurance, financing sovereign risks, and integrate insurance into development planning and financing processes. At the first stage, the task was set to diagnose the insurance industry in the country, and the results of this study, as well as the recommendations of experts on the development of this sector, were discussed during the seminar.

FULL PUBLICATION HERE