climate change catastrophe bond

The design of the recently announced Climate Resilient Development Bond (CRD Bond), an insurance-linked security (ILS) hybrid that integrates catastrophe bond protection and investment in climate resilience, was driven in part by the trend towards risks becoming uninsurable, according to Julian Enoizi, Global Head of Public Sector at Guy Carpenter.

A new financial structure that can provide community-based climate insurance or risk transfer protection from the capital markets, while incorporating resilience, advanced funding for loss-prevention and mitigation, through an insurance-linked security (ILS) designed structure has been proposed.

The insurance-linked securities (ILS) market has “breakout” potential as the sector returns to growth, increasing numbers of new sponsors enter the market, including from outside of insurance and reinsurance, but the real catalysts for future expansion could be climate change and ESG, Fitch Ratings believes.

It’s always been clear that the coastline is a popular place to live and the high-value homes that are increasingly built in some coastal regions ramp up insured exposure values in the face of storms and hurricanes. But it’s not just on the coasts, as other parts of the United States which are particularly exposed […]

Arbol, a technology-led company focused on parametric risk transfer and weather insurance markets, has launched an intriguing new solution named Captive+Parametric, which is designed to help corporations better manage climate risk and climate change exposure, with the help of parametric risk transfer to captive structures.

Climate change is running away from us, is the stark warning from the Intergovernmental Panel on Climate Change ‘s (IPCC) Report, which was published today.

The California Climate Insurance Working Group has issued a report detailing 40 state and local policy recommendations covering resilience building and risk transfer, with an over-arching theme that suggests innovative climate insurance and risk transfer is required, especially integrated solutions that consider communities alongside risk reduction.

Reinsurance broker Guy Carpenter is teaming up with other global Marsh McLennan businesses for a joined-up approach on delivering a holistic range of climate risk focused services and advisory, part of which is risk transfer related and includes catastrophe bonds.

This week, the World Bank Group announced its new Climate Change Action Plan, featuring 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 as key elements of the plan.

A forum co-chaired by UK regulator the Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority (PRA) calls for the development of a market for climate-related insurance-linked securities (ILS) in London.