Philippines cat bond will be first to list on Singapore Stock Exchange

by with No Comment ArtemisAsset Class / BrochureBelt & RoadCAT BondsChinaClimate ChangeDRR Istanbul colleaguesECIS CAT BondsILSInsurance GapParametricPension & Hedge FundsSingaporeUN-World Bank-IFCWeather Risk TransferWorld Bank

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The inaugural catastrophe bond to benefit the Philippines will also set another ILS market first, as the $225 million of notes issued through the World Bank’s IBRD CAR 123-124 cat bond transaction will be listed on the Singapore Stock Exchange (SGX).

We understand that this will be the first listing of catastrophe bond or insurance-linked securities (ILS) notes on the Singapore Stock Exchange (SGX), since it began offering listing services alongside the Singapore ILS grant program.

It’s even more noteworthy given that the first ILS listing on the SGX is a cat bond transaction from an international issuer, rather than one issued using a Singapore domiciled ILS structure.

Protecting the Belt & Road

by with No Comment ADBAsset Class / BrochureBelt & RoadBermudaCAT BondsCEEChinaClimate ChangeCorporate NewsDRR Istanbul colleaguesECIS CAT BondsIFIILSILS Funds/strategies launchInsurance GapIntelligent InsurerParametricPension & Hedge FundsPress on us / Пресса о насProtectionismRussian CAT BondsSingaporeUN-World Bank-IFCWeather Risk TransferWorld Bank

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China’s Belt and Road Initiative, the economic project which aims to recreate the ancient Silk Road that linked Europe to Asia, needs protecting. ILS could provide the perfect solution, as Kirill K. Savrassov, chief executive of Phoenix CRetro Reinsurance Company, tells Bermuda:Re+ILS.

In September a 5.8 magnitude earthquake shook Istanbul, triggering the evacuation of schools and public buildings and damaging buildings. The same week, a 5.8 magnitude event killed 38 people and caused massive damage to infrastructure and roads in north-eastern Pakistan.

For Turkey it represented a stark reminder of how bad these events can be. In 1999, a 7.4 magnitude earthquake in the western part of the country killed more than 17,000 people.

IMF recommends catastrophe bonds for Bangladesh

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Bangladesh could benefit from the use of insurance and reinsurance structures including catastrophe bonds as a way to secure much needed capacity enabling it to better respond to natural disasters and climate related risks, according to the International Monetary Fund (IMF).

Having completed a new economic assessment of the country, the IMF says that Bangladesh is making progress in reducing poverty, improving access to education and in delivering other development goals, but there is an overarching threat to the country posed by extreme weather and climate change.

Bangladesh is considered one of the countries most exposed to climate change related risks, with as much as one-third of the population at risk of displacement if sea levels rise.

一带一路经济学 : 交通走廊的机遇与风险

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下载报告中文版

中国在2013年提出 “一带一路”倡议，旨在改善跨大陆互联互通与合作。

对于“一带一路”这样规模庞大的项目，量化其影响是一项严峻挑战，这就是为什么世界银行集团对一带一路交通走廊的风险与机遇进行这项独立分析。在实证研究和严谨的经济模型支持下，《一带一路经济学》旨在帮助参与国选择最能满足其发展需求的投资与改革。此项研究的另一目的是为围绕“一带一路”的公开辩论提供信息，使讨论以数据和分析为基础。

实现‘一带一路’倡议的宏大目标，要求参与国进行同样宏大的改革。加强数据报告和提高透明度，尤其是围绕债务问题，实行公开透明的政府采购，坚持社会与环境的最高标准，都会有大有裨益。(西拉 帕扎巴西奥格鲁 世界银行公平增长、金融与制度副行长).

Peru cat bond payout decision within 20 days: Minister of Finance

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The decision as to whether Peru’s earthquake exposed IBRD CAR 120 catastrophe bond will payout a portion of the investor principal is expected within 20 days of the magnitude 8.0 earthquake that struck Peru on Sunday 26th May, according to the country’s Finance Minister.

Carlos Oliva, the Minister for Finance and the Economy in the Peruvian government spoke yesterday about the earthquake and the fact that preliminary information suggests that the country will be due a payout of some of the parametric disaster insurance the World Bank issued IBRD CAR 120 catastrophe bond provides.

As we explained on Monday this week, the magnitude 8.0 earthquake struck Peru in a relatively sparsely populated area of the Amazon jungle. However, it was the most intense quake to strike the country in twelve years, with strong shaking was felt as far as 600 miles away from the epicentre and damage widely reported to homes, commercial buildings and infrastructure.

Peru’s World Bank cat bond could be triggered by M8.0 earthquake

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A magnitude 8.0 earthquake that struck Peru yesterday, Sunday 26th May, could trigger the IBRD CAR 120 catastrophe bond, which was part of the Pacific Alliance issuance, with the available data suggesting that a 30% loss of principal should be expected by investors in the cat bond.

The magnitude 8.0 earthquake struck Peru yesterday with the epicentre in a relatively sparsely populated area of the Amazon jungle, but it was the most intense quake to strike the country in twelve years, reports say, with damage quite widely reported to homes and commercial buildings.

Strong shaking was felt as far as 600 miles away from the epicentre, which was situated around 110 miles east of the town of Moyobamba, which is the capital of the San Martín region of north Peru.

Pacific Alliance explores cat bonds for climate related risks

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The four Pacific Alliance countries, Chile, Colombia, Mexico and Peru, are beginning the work alongside the World Bank to identify potential solutions to help them transfer climate related natural disaster risks, including identifying whether further catastrophe bonds would be suitable.

The Pacific Alliance trade bloc nations in Latin America currently benefit from a combined $1.36 billion of catastrophe bond backed earthquake insurance protection, in a landmark multi-country issuance from the beginning of 2018.

The transaction was the largest single issuance of catastrophe bonds ever facilitated by the World Bank, in fact the largest sovereign risk insurance transaction ever seen.

It was issued by the World Bank’s International Bank for Reconstruction and Development in five series of catastrophe bond notes, as a way to establish protection for each of the covered countries.

Concessional Support for Climate and Disaster Risk Finance and Insurance – Discussion Paper by the InsuResilience Global Partnership Secretariat

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Discussion Paper for the High-Level Consultative Group (HLCG)

This discussion paper is prepared by the Secretariat of the InsuResilience Global Partnership (“Partnership”) based upon a synthesis of evidence commissioned by members and initial consultations with members. Concessional Support for climate and disaster risk finance and insurance (“CDRFI”) is a complex, sensitive and evolving area of work that is of high strategic relevance to the vision and objectives of the Partnership. This paper (i) illustrates the role of concessional support, (ii) summarizes potential forms, and (iii) its purpose in the context of the Partnership.

(i) The role of concessional support in promoting financial resilience of vulnerable populations

It is broadly recognized by policymakers around the world that CDRFI, when embedded in a comprehensive risk management framework, can help vulnerable countries manage the risk from climate and disaster shocks more effectively. Financing tools like sovereign risk transfer solutions can lead to faster, timelier, cost-effective, and more reliable response and recovery (Clarke, 2017).

PEF 2.0 pandemic risk transfer facility targeted for 2020 by World Bank

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The World Bank is targeting the development of a second iteration of the Pandemic Emergency Financing Facility, an improved PEF 2.0 as it is being called, which it expects to be marketed around May 2020, prior to the maturing of the first transaction.

The World Bank is calling for assistance from risk modelling firms, asking for proposals from companies that can provide modelling services to help as it improves the efficacy of the PEF risk transfer program.

Version 1 of the Pandemic Emergency Financing Facility (PEF) was established in 2017 and saw the World Bank tapping into the capital market’s appetite for relatively uncorrelated sources of insurance and reinsurance risk as investments.

This involved leveraging the insurance-linked securities (ILS) market and institutional investor appetite for reinsurance linked assets to provide the risk capital necessary to back the so-called three-year initial term of the insurance window of the PEF facility.