Meteo Protect pays out on Spanish olive grower parametric covers

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The Agricultural Association of Young Farmers (ASAJA-JAEN), a Spanish olive growers’ cooperative, has announced that 100% of its members that subscribed to a parametric insurance scheme through a deal with Meteo Protect, have received compensation after regional temperature highs.

Earlier this year weather index insurance specialist, Meteo Protect, secured a deal with ASAJA-JAEN that would open up its parametric insurance solutions to the Spanish olive growing community.

Now, after members experienced unseasonal weather this spring, with average temperatures of 15.4°C, which is 1.7°C above the seasonal average for the region, 100% of those that subscribed have received compensation, the cooperative has announced.

Insurance Development Forum Applauds UK and Germany Leadership to Address Disaster Coverage Gap

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Government Agencies Commit Support to Build the Financial Resilience of the Poorest and Most Vulnerable Economies

London, July 20, 2017 – The Insurance Development Forum (IDF), a partnership of the World Bank Group, the United Nations Development Programme, and global insurers, applauds announcements by the development ministries of the United Kingdom and Germany to dedicate support to narrow the disaster protection gap for communities in the poorest countries.

World Bank Treasury: Facilitating Catastrophe Risk Transfer

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A US$30 million catastrophe bond issued by the World Bank under its Capital-at-Risk Notes Program helps the Caribbean Catastrophe Risk Insurance Facility (CCRIF) transfer the natural disaster risk of 16 member countries to the capital markets efficiently and at highly competitive prices.

Background

The Caribbean Catastrophe Risk Insurance Facility (CCRIF) was established in 2007 with the support of the World Bank, the Government of Japan and other donors. CCRIF provides insurance coverage against earthquake, hurricanes and excessive rainfall to sixteen Caribbean countries (Anguilla, Antigua & Barbuda, Bahamas, Barbados, Belize, Bermuda, Cayman Islands, Dominica, Grenada, Haiti, Jamaica, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Trinidad & Tobago and the Turks & Caicos Islands) by pooling the risks of the countries and transferring a portion of the pooled risks to the re-insurance market. CCRIF’s portfolio has grown since 2007 to about US$135 million in 2013. As of August 2014, eight payments were made to affected countries. CCRIF was designed as a parametric facility, which provides a fast and transparent payment when triggered. As a reference, the payout from CCRIF was the first to reach Haiti in the aftermath of the 2010 earthquake.

Peru to expand El Niño agricultural catastrophe insurance cover

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The Peruvian government and the Ministry of Agriculture have chosen to expand the country’s El Seguro Agrario Catastrófico (SAC), or the Agricultural Catastrophe Insurance scheme, to include five more regions, with the launch of an international tender, according to reports.

Agriculture in PeruReports in peruthisweek.com underline the recent impact of El Niño on the Peruvian agriculture sector, which led to a number of infrastructure losses and adversely impacted numerous industries, especially the country’s important agricultural sector.

In response to the high volumes of flooding caused by the El Niño weather system, many Peruvian farmers saw their crops destroyed and subsequently lost money, which, absent insurance and reinsurance market protection, reduces the social and economic stability of the Peruvian agricultural sector.

7 things you need to know about climate risk insurance

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1. Climate risk insurance is a practical and political solution

Climate risk insurance can help protect individuals, small businesses or entire countries from permanent damage caused by the impact of extreme weather events. In the short-term it can reduce the effect of natural disasters and, in the longer term, can contribute to preventive disaster risk reduction.

World Bank Treasury: Managing Catastrophe in Costa-Rica

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The Catastrophe Deferred Drawdown Option (Cat DDO) is a form of contingent financing offered by IBRD to help countries take a proactive stand towards reducing exposure to catastrophic risk and access finds immediately after a natural disaster. Costa Rica was the first country to sign a Cat DDO with the World Bank and subsequently drew down the loan after a natural disaster. The Cat DDO complements other financial instruments and disaster risk management measures in place in the country.

Background

Costa Rica is a small, middle-income country with substantial exposure to natural disasters, including earthquakes, floods, hurricanes, landslides, and volcanic eruptions. According to a World Bank funded natural disaster study, Costa Rica ranks number two in the world among countries most exposed to multiple hazards, with 80 percent of the country’s GDP and 78 percent of Costa Rica’s population in high-risk areas.

Costa Rica has built an efficient disaster response system and established an effective system of building codes, environmental standards, and land use planning to mitigate the impact of natural disasters. It has also made substantial progress in strengthening its institutional and legal framework and mainstreaming catastrophe risk management in its national development program.

Global Parametrics to bring third-party capital to disaster risk transfer

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The world of disaster risk transfer and financing for the developing world and development communities is getting increasingly interesting and relevant to the ILS world, with the latest news being the imminent launch of Global Parametrics, a parametric risk transfer provider backed by a third-party capitalised risk fund.

Global Parametrics is going to be unique in a number of ways, as it will target selling only parametric risk transfer and index insurance coverage to organisations which are largely unprotected today, as it aims to focus its products on areas that can help to reduce the protection gap and help to address under-insurance of poor, and vulnerable people in developing countries.

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Trigger happy?

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Clear and unambiguous wording of trigger clauses in ILS contracts is vital to their success, says Clive O’Connell of McCarthy Denning.

When a lawyer looks at an ILS contract wording, the first clauses that she or he ought to review are the law, jurisdiction and dispute resolution clauses. From these, a lawyer can determine how the rest of the contract should be read and interpreted, and even whether he or she is qualified to interpret it.

Understanding Catastrophe Models

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This article originally appeared on InsNerds.comToday we have part two of our our series on Catastrophe Models by catastrophe modeler Nick Lamparelli. You can read part one here.

“You stop sending me information, and start getting me some.” Gordon Gekko

In this, the second part of our series on CAT models, we will go into the guts of a catastrophe (CAT) model and explain how they are constructed, assumptions embedded in them, and the financial consequences of these assumptions.

Parametric ‘cat in a box’ Israel earthquake reinsurance deal completed

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A first of its kind Israel earthquake parametric reinsurance transaction has been brought to market successfully by reinsurance firm Munich Re and capital markets reinsurance broker arm Aon Benfield Securities for Israeli insurer I.D.I.

The innovative transaction uses a parametric ‘cat in a box’ solution, which would enable any potential loss event to be easily calculated and any claim payout to be made rapidly.

The beneficiary of the reinsurance protection is Israeli insurance and financial services company Israel Direct Insurance (I.D.I.) Company Limited, which has secur$14m (NIS 50m) of protection from the transaction.