Two more major companies are planning to transfer some of their pension fund risks through longevity swaps in the coming weeks. Longevity risk transfer is becoming a really popular and much more accepted way to take some of the risk out of your pension scheme and enable you to plan your cash flow better and budget for pension payments more accurately.
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Environmental Finance reports that Nikon cameras in Switzerland are utilising the services of weather risk management firm CelsiusPro AG to offer camera buyers in Switzerland a refund should the weather turn bad over a defined period over the Easter holidays.
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The market for life insurance securitization and longevity risk trading has now got a champion to help it grow and mature. The Life and Longevity Markets Association has been founded ‘as a not-for-profit venture in order to promote a liquid traded market in longevity and mortality-related risk’.
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The New Zealand Superannuation Fund is the fund for the state run retirement benefit (pension) available to all working New Zealanders. Many other countries have similar funds, the UK for example has the state run pension. In a first for a fund of its kind, it has announced that it will be investing some of its fund into catastrophe bonds.
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Disclosure of weather and climate related risks

February 4, 2010

The Securities & Exchange Commission (SEC) has issued a guidance note to clarify what publicly traded companies should be disclosing about their climate change related risks effects on business operations. As well as disclosing things like emissions management, companies should now disclose anything to do with the physical impacts of the changing weather. That sounds [...]

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Sompo Japan announce weather index insurance for drought in Thailand

January 27, 2010

Sompo Japan have released a press release to announce the launch of a new insurance product in Thailand to protect against drought. It’s good to see further advances in the weather index based insurance world as they expand to new regions. Although this is again a micro-insurance pilot scheme it’s hoped this could continue as [...]

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Hannover Re increases K6 transaction

January 27, 2010

Hannover Re has announced that it has increased the volume of its K6 transaction (originally issued in 2009). K6 is comprised of portfolios of non-proportional reinsurance treaties in property catastrophe, marine and aviation lines.

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Satellite assessment for livestock insurance

January 27, 2010

Sometimes new products appear on the market which are both innovative and interesting to us here at Artemis. This one is particularly interesting as it utilises satellites to assess pasture greenness to create an index against which insurance products can be triggered.

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Foundation Re III Ltd. cat bond upsized to $180m

January 24, 2010

The Hartford’s upcoming catastrophe bond, Foundation Re III Ltd., has been upsized to $180m during the marketing phase. The notes have been well received by investors we hear and the Hartford is taking advantage of this to raise the deal from its initial size of $100m. Full details on Foundation Re III Ltd. are available [...]

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GC Forecat predicts more landfalling hurricanes for southeast U.S. in 2010 season

January 21, 2010

GC Forecat, the pre-season hurricane forecast product from Guy Carpenter, is predicting higher than normal risk of landfalling hurricanes for the U.S. southeast region (coastline from Atlantic Florida-Georgia border to Cape Hatteras). That is the only region that their report (available via the excellent GCCapitalideas.com blog here) predicts a greater than normal risk of landfalling [...]

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