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ILS Related

NEWS

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

World Bank fully supportive of direct sovereign risk transfer: Bennett

ARTEMIS: The efforts of the World Bank around disaster risk financing for its members continues to be a real benefit, and while the organisation can and will do more, this isn’t about being the dominant force in the market, according to Michael Bennett, Head of Derivatives & Structured Finance, World Bank Treasury. During last month’s annual ILS conference in New York City, held virtually for the first time owing to restrictions, Artemis spoke with Bennett

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Peak Re: Bridging the protection gap in emerging markets

Large and getting larger: Emerging Asia’s protection gaps The prevalence of under-insurance and non-insurance in emerging markets is well-documented.[1] The proverbial protection gap persists across different risks, from property to health and mortality, variously also extending to include longevity and liability. There are many reasons underpinning the large protection gap and low insurance penetration in emerging markets, which can be summarised as the “Triple-A Conundrum” – i.e. lack of Accessibility, Affordability and Awareness.[2] These are considered key

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Hannover Re cedes up to 32% of cats, 24% of COVID losses to retro in 2020

ARTEMIS: German reinsurance giant Hannover Re benefited from its retrocessional protections throughout 2020, potentially ceding almost one-third of natural catastrophe losses and 24% of its losses from the COVID-19 pandemic. The reinsurer reported its full-year 2020 results this morning, revealing that large losses came in well above budget for its P&C reinsurance business due to the contribution of the pandemic. Hannover Re reported almost EUR 1.6 billion of net major losses in 2020, 950.1 million

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Hong Kong’s ILS grant scheme to cover ~US $1.6m of issuance costs

FULL ORIGINAL PUBLICATION HERE Hong Kong’s Government has revealed some of the details of its proposed insurance-linked securities (ILS) grant scheme, through which it will pay a share of issuance costs for any ILS structures issued out of the Special Administrative Region. The Hong Kong Special Administrative Region (HK SAR) of the People’s Republic of China has been preparing to allow insurance-linked securities (ILS) issuance from its financial market for a number of years now,

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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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