Archive for December, 2011

Broker Guy Carpenter has published a report looking at effective uses of catastrophe models by property insurers, uncertainty in risk modelling and advocating a multi-model approach to catastrophe models. The report suggests that a multi-model approach is better for estimating risk and controlling uncertainty, particularly given the ever-present factor of uncertainty in risk modelling.

The New Madrid Seismic Zone is one of the most active areas of seismicity in the U.S.. Rates of seismicity today suggest a 28-46% chance of a M6.0 or greater earthquake in the New Madrid region at some point over the next 50 years. A newly published report from risk modeller RMS shows that even […]

The latest sigma report from reinsurer Swiss Re’s Economic Research & Consulting division takes a look at innovation in non-life insurance markets. The report says that although insurers are often seen as lacking in innovation there is actually considerable product innovation happening in the markets but much of it happens incrementally. Alternative risk transfer techniques, […]

Prudential Financial have announced that they have participated as a reinsurer in the recent longevity transaction between Rolls-Royce and Deutsche Bank. The transaction saw Rolls-Royce offload some £3 billion of its pension liabilities in a longevity swap deal with Deutsche Bank. The longevity risk has in turn been passed on to a group of reinsurers, […]

Amlin are entering the catastrophe bond market for what we believe is the first time with a multi-peril cat bond which will be sponsored by their Amlin AG subsidiary. The cat bond is being issued through a newly established Bermuda domiciled SPV, Tramline Re Ltd. and comprises $75m of Series 2011-1 notes. Tramline Re has […]

A new portfolio manager has been hired by Bermuda based Validus Managers to look after their reinsurance, retrocessional and insurance-linked securities AlphaCat funds, according to this article in the Royal Gazette. Validus Managers look after over $400m of investment inflows in a number of vehicles which invest in private reinsurance, retro and catastrophe bonds.

Chartis, who recently completed the issuance of a $575m catastrophe bond through a Bermuda domiciled SPV Compass Re Ltd., have published a press release regarding the transaction. The deal for which the ultimate beneficiary would be National Union Fire Insurance Co. of Pittsburgh, a subsidiary of Chartis, is the third catastrophe bond from Chartis after […]

Global law firm with a specialist team devoted to insurance-linked securities Walkers Group have published a useful client guidance document regarding the approval process for the establishment of Irish special purpose reinsurance vehicles (SPRV’s). Walkers had a number of client enquiries about the process which their ILS team took to a meeting with the Central […]

With funding secured from the German Federal Ministry for the Environment, a new microinsurance scheme is being planned through the combined efforts of reinsurer Munich Re, the Caribbean Catastrophe Risk Insurance Facility and broker MicroEnsure. Funded with €2m for three years to help further the project, the three parties are being brought together under the […]

Estimates for the insured loss total from the flooding in Thailand are still confused and it’s likely to be some time before an accurate figure can be quoted. It seems that the figure we quoted of a $20 billion insured loss from a report by A.M. Best is likely to be too high, but other […]