storm surge

Executives from New York Metropolitan Transportation Authority (MTA) and its captive insurance subsidiary, First Mutual Transportation Assurance Co. (FMTAC), have discussed how the entity utilises the capital markets to create tension and competition between markets when placing its reinsurance program.

The new $125 million MetroCat Re Ltd. (Series 2017-1) catastrophe bond from the New York Metropolitan Transportation Authority (MTA) has now been priced at a level below the middle of guidance and sources tell us the deal has not been upsized.

The New York Metropolitan Transportation Authority (MTA) is returning to the catastrophe bond market for its second issuance, a $125 million MetroCat Re Ltd. (Series 2017-1) cat bond, which will provide the NY MTA’s captive insurer the First Mutual Transportation Assurance Co. with parametric storm surge and earthquake reinsurance protection.

New analysis by catastrophe risk modelling and management firm RMS, reveals that rising sea levels signal a potential rise in economic and insured losses from hurricane-driven storm surge across the U.S. coastline.

The amount of homes at risk of storm surge along the Gulf and Atlantic coasts has increased to 6.6 million from 2014, while the total reconstruction cost values (RCV) of the properties has remained at an estimated $1.5 trillion, according to CoreLogic.

Research into the “unprecedented” and “very unusual” significant surge in sea levels that occurred on the East Coast of the U.S. during 2009 and 2010, claims to have found the cause of the storm surge-like phenomena.

A new, comprehensive, high-resolution storm surge model for the U.S. has been released by catastrophe risk modelling and analysis firm Karen Clark & Company (KCC), which it believes will help ILS investors to get more comfortable with this risk.

The U.S. NOAA’s National Hurricane Center (NHC) has announced plans to launch a storm surge watch and warnings graphic, the next phase following their Potential Storm Surge Flooding Map that launched at the start of the 2014 Atlantic Hurricane Season.

Risk modelling, analytics and catastrophe risk management firm RMS has been working alongside China Property and Casualty Reinsurance Company (China Re P&C) in a project seeking to reduce uncertainty in its China typhoon risk model.

A new CoreLogic storm surge study and recent findings from an analysis performed by Reuters share the same perception, that storm surge from coastal flooding is likely more prevalent than the reinsurance and insurance-linked securities markets think.