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Cherry picked selection of news on ILS, DRF, Reinsurance and other matters related to our activities. Updated on a weekly basis.

Cat bond & ILS coupons should compensate as climate increases hurricane risk: Twelve Capital

FULL ORIGINAL PUBLICATION HERE Climate change, variability and the expected increases in Atlantic hurricane risk that these factors will drive, is still likely to be compensated for in catastrophe bond and private insurance-linked securities (ILS) coupons, as pricing should rise and consequently returns, in line with the risk, according to ILS manager Twelve Capital. Twelve Capital, the Zurich headquartered insurance sector specialist fund manager, works with machine learning focused climate technology company, reask on hurricane risk

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Asian ILS market to benefit regional re/insurers: Fitch

FULL ORIGINAL PUBLICATION HERE The development and growth of an insurance-linked securities (ILS) market in Asia can only be a benefit to local insurance and reinsurance carriers, as well as those operating regionally, as the capital markets capacity can help them expand their ability to underwrite and diversify capacity sources, rating agency Fitch explained recently. Fitch noted in a recent report that Asian insurers and reinsurers are taking up catastrophe reinsurance and retrocession cover in

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Press release

Following today’s declaration of Bermuda Monetary Authority (BMA) on Cancellation of registration for Phoenix CRetro Reinsurance Company Limited the Company would like to comment as follows:   Despite an important role Bermuda plays in ILS environment, the country is still blacklisted as an offshore destination by regulators and central banks of Eastern European and Central Asian countries as well as Russian Federation, which makes it very hard if not impossible to operate out of this jurisdiction when developing

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Parametric sovereign cat bonds: the way to insure the Belt and Road

ORIGINAL PUBLICATION HERE. PDF VERSION HERE. CHINESE 中文 TRANSLATION HERE . Countries in Central Asia and Eastern Europe that have been recipients of Chinese investment via projects associated with its Belt and Road Initiative (BRI) should use parametric sovereign cat bonds to insure themselves against the risk of natural disasters. That is the view of Kirill Savrassov, an insurance-linked securities (ILS) and sovereign risk transfer specialist. “China’s Belt and Road Initiative has created an even greater need for

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Singapore’s ILS grant scheme extended to end of 2022: MAS

FULL ORIGINAL PUBLICATION HERE The Monetary Authority of Singapore (MAS) has extended its insurance-linked securities (ILS) grant scheme to the end of 2022, as Singapore looks to build on recent positive momentum and attract more catastrophe bond issuers to its shores. Speaking today at our Artemis ILS Asia virtual conference, Mr. Benny Chey, Assistant Manager Director (Development and International) at the Monetary Authority of Singapore (MAS), announced the extension of the ILS grant scheme until

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Sovereign Parametric Catastrophe Bonds as means to address the Protection Gap in emerging countries

ORIGINAL PUBLICATION HERE   Summary   Of the $232bn. of economic losses from natural disasters in 2019, only $71bn. was insured. 35% level of catastrophe risk coverage in advanced countries downsizes to only 6% in emerging economies. Out of existing disaster risk finance arrangements, the Sovereign Parametric Catastrophe Bonds seem to be the most viable instrument for the ECIS region. As mentioned by AON in their Weather, Climate & Catastrophe Insight: 2019 Annual Report, last year

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Sovereign Parametric Catastrophe Bonds as means to address the protection gap in emerging countries

As mentioned by AON in their Weather, Climate & Catastrophe Insight: 2019  Annual Report, last year brought $232 billion of economic losses from natural disasters whereby only $71 billion was actually insured. It outlined that the world continue to face a fundamental issue of insurance gap, especially in emerging and developing countries, where losses for businesses and governments are only increasing following a decade-long rise in natural catastrophes linked to the climate change. Protection gaps exist in both emerging and developed markets.

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GREEN INSURANCE LINKED SECURITIES FRAMEWORK

FULL ORIGINAL PUBLICATION HERE Generali has developed its first Green Insurance Linked Securities Framework, in line with the Group’s sustainability strategy. Insurance Linked Securities are alternative financial instruments allowing for the transfer of insurance risk to institutional investors. This Framework aims to be the first contribution to develop guidelines for Green ILS structures going forward. The future Green Insurance Linked Securities will be characterised by the investment of the collateral in assets with a positive environmental

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Generali develops framework for Green insurance-linked securities (ILS)

FULL ORIGINAL PUBLICATION HERE Generali, one of the largest global insurance and asset management companies, has recognised the potential for insurance and reinsurance linked investments to have green or ESG credentials and has developed a framework for Green insurance-linked securities (ILS). As a recognised European sponsor of catastrophe bonds, as one of the way’s it sources reinsurance protection from the capital markets, Generali is already a participant in the ILS market. But the company is

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