World Bank climate change plan highlights cat bonds & risk transfer
This week, the World Bank Group announced its new Climate Change Action Plan, with a range of commitments to ramp up and deliver record levels of climate finance, while catastrophe bonds, disaster risk financing and insurance against climate risk are also mentioned Through its new Climate Change Action Plan, the World Bank is targeting the delivery of record levels of climate financing to developing countries. At the same time the World Bank aims to work
Cat bond activity may give multi-strategy funds room to expand
The acceleration of activity in the global catastrophe bond market over the last few months could now drive an opportunity for a number of multi-strategy investment funds to expand, as the availability of paper has increased even causing some investment managers to lift the shutters on closed funds, we understand. Which could drive more capital to look at catastrophe bonds and perhaps other insurance-linked securities (ILS), or the more structured collateralised reinsurance opportunities such as
Global insurance protection gap hit $1.4 trillion high in 2020: Swiss Re
The global insurance protection gap, or the gap between economic losses and those that are insured, widened in 2020 as pandemic related effects drove global macroeconomic resilience to decline by 18%, according to a measure by reinsurance firm Swiss Re. Swiss Re Institute has published its Resilience Index, which shows that the COVID-19 pandemic reduced global macroeconomic resilience by close to a fifth in 2020. Global economic growth is expected to recover strongly in 2021,
UCITS cat bond funds growing fast. Schroders overtakes GAM as largest
UCITS catastrophe bond funds as a group have increased their assets significantly over the last year, with accelerated growth of the cat bond market and rising interest in ILS investments helping to propel the UCITS cat bond funds we track to asset growth of roughly 58% in just one year. Over that period, first place position for the largest UCITS cat bond fund has also changed, as Schroders has now overtaken GAM, after Schroders’ GAIA
Hong Kong ILS enquiries already received from potential sponsors
It increasingly looks like Hong Kong could break into the insurance-linked securities (ILS) market before too much longer, as with details of its ILS grant pilot now available, one local law firm said it is already receiving enquiries from potential sponsors. Back in February, Paul Chan, the Financial Secretary of Hong Kong, revealed plans for a Pilot Insurance‑linked Securities Grant Scheme that will pay as much as HK $12 million per issuance, which is close
Insurance Europe outlines “vital” need to remove key re/insurance access barriers
Insurance Europe has underlined the importance of removing market access barriers between European re/insurers and the countries Argentina, Brazil, Canada, India and Indonesia. The governing body believes this action is needed to help reduce protection gaps and avoid dangerous concentrations of risk in these jurisdictions. Furthermore, avoiding a build-up of climate-related risks in any one jurisdiction and facilitating the sharing of natural catastrophe risk across markets is described as more important than ever. In Argentina,
Cat bond growth propelled by strong investor demand: Moody’s
Moody’s has reported that the catastrophe bond market saw record issuance in 2020 despite a brief pause in Q2 following a particularly tumultuous period for the financial markets. And looking ahead through 2021, the rating agency expects cat bond issuance to continue to grow with strong investor demand for the asset class, evidenced by a reduction in spreads and upsized deals seen over the last several quarters. According to Moody’s future growth in the ILS market will
Franklin Templeton launches UCITS cat bond fund, managed by K2’s Malawer
Investment manager Franklin Templeton has launched a new UCITS catastrophe bond fund, which is portfolio managed by Jonathan Malawer from its hedge fund specialist manager arm K2 Advisors. The Franklin K2 Cat Bond UCITS Fund is a Luxembourg based fund and part of the Franklin Templeton Alternatives Funds offering from the investment manager. The new UCITS catastrophe bond fund will be widely marketed across Europe, being registered in eleven countries in total, including the UK,
Franklin Templeton launches UCITS cat bond fund, managed by K2’s Malawer
Investment manager Franklin Templeton has launched a new UCITS catastrophe bond fund, which is portfolio managed by Jonathan Malawer from its hedge fund specialist manager arm K2 Advisors. The Franklin K2 Cat Bond UCITS Fund is a Luxembourg based fund and part of the Franklin Templeton Alternatives Funds offering from the investment manager. The new UCITS catastrophe bond fund will be widely marketed across Europe, being registered in eleven countries in total, including the UK,