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NEWS

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

Pacific Alliance hopes to expand cat bond to cover cyclones, floods, droughts

FULL ORIGINAL PUBLICATION HERE The Pacific Alliance, a Latin American trade bloc made up of Chile, Colombia, Mexico and Peru, would like to expand on the coverage provided by their catastrophe bonds, with hydro-meteorological risks including tropical cyclones, drought, floods and even cold weather all mooted as potential perils to include. The Ministries of Finance of the Pacific Alliance members met in late 2020 to discuss next steps in their disaster risk financing and catastrophe

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Cat bonds: Structurally diversifying & primed for growth, says Neuberger Berman

FULL ORIGINAL PUBLICATION HERE. COPY OF THE FULL WHITE PAPER HERE. Catastrophe bonds and insurance-linked securities are one of the “very few genuinely, structurally diversifying asset classes,” according to the Neuberger Berman Insurance-Linked Strategies team, who give the asset class a positive outlook for 2021. Writing in a white paper, the Insurance-Linked Strategies team of global asset manager Neuberger Berman explain that they also believe catastrophe bonds remain attractively valued and as an asset class

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World Bank has ‘only scratched the surface’ on what it can do: Bennett, ILS NYC 2021

FULL ORIGINAL PUBLICATION HERE The World Bank has “only scratched the surface” on what it can do with member governments that are looking to transfer some of their disaster risk to the reinsurance sector and the capital markets, according to Michael Bennett, Head of Derivatives & Structured Finance, World Bank Treasury. The World Bank is an international organisation with 189 member governments. Through the use of both traditional reinsurance and the issuance of catastrophe bonds,

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Catastrophe protection gap needs capital market support: Bernardino, EIOPA

FULL ORIGINAL PUBLICATION HERE Gabriel Bernardino, the soon to retire Chairman of the European Insurance and Occupational Pensions Authority (EIOPA), has highlighted the capital markets role in delivering catastrophe insurance that has fewer protection gaps. In an interview with Brink News, Bernardino explained the need for multi-peril catastrophe insurance and reinsurance coverage that protects against the uncovered portion of risks, such as non-damage business interruption related to a pandemic or other peril, just as much

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ILS maturing nicely, but education still needed: Mayer Brown, ILS NYC 2021

FULL ORIGINAL PUBLICATION HERE Overall, the insurance-linked securities (ILS) market is maturing in an attractive manner but as new sponsors and jurisdictions enter the fold, there’s a need for continued education, according to global law firm Mayer Brown. The legal work in the ILS world is significant and critical in driving innovation and ensuring everything is in order, the way both sponsors and investors really need it to be. Against this backdrop, the final day

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ESG opportunity can be meaningful for ILS: Nephila’s Schauble, ILS NYC 2021

FULL ORIGINAL PUBLICATION HERE Today, there’s a significant amount of capital looking to be deployed in an environmental, social, and governance (ESG) friendly way, which represents a material opportunity for the insurance-linked securities (ILS) asset class, says Barney Schauble, Head of Labs at Nephila Advisors. Day two of our fifth annual and first virtual ILS NYC conference, started with an exploration of ESG and the impact opportunity in the ILS market. While the concept is nothing

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Positive cat bond market momentum to continue in 2021: Aon Securities

FULL ORIGINAL PUBLICATION HERE The property catastrophe bond market experienced a record year in 2020 with around $11 billion of new issuance and leading broker dealer Aon Securities believes the positive momentum will persist. Aon Securities, the capital markets and insurance-linked securities (ILS) focused unit of the global insurance and reinsurance broker, said in its latest report that 2020 saw property catastrophe bond issuance rise by 104%, compared to the prior year. Given this was

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Jamaica: World Bank cat bond still underway. Gets CCRIF rainfall payout for Zeta & Eta

FULL ORIGINAL PUBLICATION HERE Jamaica continues to work with the World Bank on a first catastrophe bond for the country the Finance Ministry has said and reflecting the importance of disaster risk financing, in recent weeks it has received a roughly $3.5 million payout under its parametric CCRIF insurance coverage. The payout comes after the torrential rainfall from tropical cyclones Zeta and Eta impacted the Caribbean island nation triggered the parametric excess rainfall protection that

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