cost

The recently closed Embarcadero Re Ltd. catastrophe bond, which saw the California Earthquake Authority transfer $150m of earthquake risk directly to the capital markets through their own SPV, shows that cat bond coverage can be comparable (and even cheaper) than the equivalent reinsurance coverage.

Hurricanes are capable of inflicting extremely large amounts of damage when they make landfall on highly populated, urbanised regions of the U.S. coastline. Reinsurers have long had a fear of a direct hit on Miami from a major hurricane, an event which could cause over $100 billion worth of damage. The uncertain nature of the […]

A research paper due to be published this month in the Bulletin of the American Meteorological Society suggests that routine variations in the weather, such as rainfall and cooler or hotter than average days, can result in an annual cost to the U.S. economy of $485 billion.