Archive for June, 2008

There’s a very interesting article in the press today about the impact (or lack of impact) of the current economic climate turmoil to the catastrophe bond market. It reiterates what has been said many times over the last few weeks; that the market in insurance-linked securities is highly liquid and investors are perhaps treating cat […]

The U.S. Climate Change Science Program and the Subcommittee on Global Change Research have released a report that provides analysis of observed and projected changes in weather and climate extremes in North America and U.S. territories. The report is based on scientific evidence that a warming world will be accompanied by changes in the intensity, […]

The Japan Bank for International Cooperation (JBIC) has signed (on June 12th) a memorandum of understanding with the Bank for Agriculture and Agricultural Cooperatives (BAAC) cooperation for the promotion of weather derivatives in the agricultural sector of Thailand. Specifically that will involve holding seminars to help improve understanding among end-users and private sector companies. Full […]

Weatherbill have provided the cover for another innovative travel scheme similar to their deal with Priceline. They’ve entered into an agreement with itravel2000.com, Canada’s largest online travel retailer, to provide coverage for their promotion, “Let it Snow”. WeatherBill will provide up to $100m CDN in snow coverage. The deal involves itravel2000 customers receiving a refund […]

Risk Management Solutions (RMS) has announced its new portfolio management platform, Miu, which supports the trading of insurance risk using RMS’ catastrophe risk analytics. Miu allows users to quickly quantify and tailor a portfolio of catastrophe risk positions packaged in any form: catastrophe bonds, over-the-counter (OTC) derivatives, sidecars, industry loss warranties (ILWs) and various forms of reinsurance. […]

According to the publication Travel Weekly (article here), Weatherbill are looking to target UK travel companies in an attempt to capitalise on their recent deal with Priceline.com. Good move by Weatherbill. The UK travel industry (particularly tour operators) do not use alternative methods to hedge against weather either for their customers or their own bottom […]

The recent flooding in Iowa state has led to damage estimates which are nearing $3b. Reinsurers are going to bear the brunt of this with Ace, XL, PartnerRe and Renaissance Re all being exposed. Actual damages may come in under that level if it dries up significantly but at the moment it’s looking fairly accurate. […]

Oppenheimer Funds are planning a move into the catastrophe bond investment marketplace with the coming launch of the Oppenheimer Master Event-Linked Bond Fund which will invest in event linked catastrophe bonds. This is the latest of the larger fund management companies to see the value in investing in our marketplace.

A new report from AIR Worldwide estimates that insured property value in coastal states prone to hurricanes is set to double over the next ten years. The report is available here (PDF format). The annual rate of increase is at 7% at the moment and climbing which leaves me to wonder what this means for […]

There are many areas on the globe which have yet to embrace or be penetrated by alternative risk transfer techniques. Of those left to fully embrace instruments such as catastrophe bonds and insurance linked securities, India stands out as a major opportunity for market players due to its rapidly expanding economy and appetite for weather […]