BiH: introducing a form of compulsory insurance for residential buildings is under consideration


Establishing a national disaster insurance scheme is one of the main features of the UNDP’s NAP for Bosnia & Herzegovina. Improving BiH’s preparedness for dealing with Nat Cat events is instrumental considering the expected increase in flood losses and the very low current insurance coverage.

Over the past eighteen years the country has had 7 years of drought and 5 years of flooding, specifically in 2014 when major flooding caused damages equivalent to 15% of the country’s GDP for that year, an article prepared by the UNDP reads. Moreover, according to the European Environment Agency, annual flood losses in BiH are expected to increase five-fold by 2050 and up to 17-fold by 2080.

UNDP evaluates cat bonds as disaster risk transfer solution for ECIS region


The United Nations Development Programme (UNDP) is evaluating the use of catastrophebonds as part of a disaster risk transfer solution for use in the Europe and the Commonwealth of Independent States (ECIS) region.

The focus is on ECIS countries ( Central Asia, Southern Caucasus, Eastern and South East Europe, and Turkey) where underinsured natural disaster risks are costly burdens on government’s, society and taxpayers, drawing influential parties to focus on identifying macroeconomic solutions to minimise the cost of losses.

Between 2005 and 2014 this region of Eastern Europe and CIS faced 314 natural disaster events, which caused the deaths of more than 60,000 people, with 11 million affected by the disaster events.

UNDP Disaster risk reduction financing regional conference


Disasters and the associated economic shocks are a significant threat to human life and personal wellbeing. While the costs have always been significant, disasters are increasingly more expensive.  Between 2005-2014, the Eastern Europe and Central Asia region alone faced 314 disasters, resulting in more than 60,000 people killed, 11 million people affected and US$25 billion in damages.

A lack of resilience to disasters (which increasingly have massive consequential impacts well beyond the direct event) in both developed and developing economies is an increasing threat to economic growth and global security. Therefore, investors seeking to mitigate these risks need to prioritize funding for development that targets resilience and sustainability provided by better infrastructure.

Twelve Capital in sixteenth Dodeka private cat bond, a $23.567m Dodeka XIII


Zurich headquartered insurance and reinsurance linked investment fund manager Twelve Capital Management has completed its sixteenth private catastrophe bond transaction in the Dodeka series, with a $23.567 million Dodeka XIII deal which was listed on the stock exchange in Bermuda yesterday.

ILS fund manager Twelve Capital uses these privately arranged and securitized deals to transform property catastrophe reinsurance or retrocession risks into an investable form that suits its liquid cat bond focused fund or investor mandates.

Insurance-Linked Securities: Embracing Catastrophic Risks




  • Insurance-linked securities can be an attractive investment as they are uncorrelated with other assets;
  • Recent hurricanes in the US have increased the focus on Insurance-Linked Securities;
  • In some jurisdictions, insurance-based solutions are dependent on insurance penetration;
  • There is no reason why Insurance-Linked Securities cannot protect governments as well as companies and individuals.

Twelve Capital adds portfolio diversification with latest Dodeka cat bond


Insurance and reinsurance focused investment manager Twelve Capital said that its latest privately transacted catastrophe bond, the almost $35 million Dodeka XIVdeal, that we covered at the time of its listing at the start of the month, features perils not typically accessible in the main cat bond market and so adds diversification to its portfolio.

The latest Dodeka private cat bond is the fifteenth such deal in the Dodeka series from ILS investment fund manager Twelve Capital, as it seeks additional securitised catastrophe linked assets for its fund portfolios.

Losses an opportunity to assess ILS fund manager performance


When this year’s major hurricane losses struck the insurance-linked securities (ILS) market, the last thing on most investors minds was the relative performance of their investment managers. But now, with the picture of the eventual loss clearing, many ILS investors will for the first time be able to compare their ILS manager with others in the market.

But comparisons are not as simple as they may seem, with ILS managers having their own views of risk, their own risk model calibration, and portfolios that are often differentiated through risk appetite, their relationships with cedents and how good their access to business is.

Also size matters, as ILS funds with more assets under management will typically have a much broader portfolio of insurance and reinsurance risk, in terms of the number of contracts underwritten and invested in.

Страховые Ценные Бумаги: акцент на катастрофических рисках


Страховые ценные бумаги (ILS) – класс активов, связанных с катастрофическими событиями. Они обеспечивают элемент диверсификации для инвестиционных портфелей. Проще: обвал рынка инвестиций никак не связан с природной катастрофой.

Ключевые моменты

  • Страховые ценные бумаги могут быть привлекательной инвестицией, поскольку не связаны с другими классами активов;
  • Недавние ураганы в США увеличили мировой фокус на ILS;
  • В некоторых странах вопросы макроэкономической защиты зависят от уровня охвата страхованием (т.н. страхового проникновения);
  • Нет препятствий по которым ILS не могут предоставлять защиту не только гражданам и организациям, но и правительствам в целом;

Some private ILS lines could see rate increases of 30% or more: Twelve Capital


The insurance-linked securities (ILS) market responded well to recent intense pressure from third-quarter catastrophe events, and there’s an opportunity for ILS players to take advantage of premium increases of up to 30% or higher, according to insurance and reinsurance linked investment specialist manager, Twelve Capital.

In a recent research note on the active 2017 hurricane season, Twelve Capital has said that the private ILS market is likely to experience premium increases of between 10% to 30%, dependent on the line of business, with some niche areas of the private ILS sector seeing rates increase even higher.

Cat bond hurricane loss estimates trend downward


Cat bond holders could pay out between $300m and ‘low-single-digit billion’ dollars as a result of recent natural catastrophes, fund managers say.

Catastrophe bond investors are facing losses that could reach “low-single-digit” billions of dollars following this year’s devastating hurricane season, according to insurance-linked securities fund managers.