Archive for October, 2016

Risk modelling company Karen Clark & Company (KCC) has estimated that the insurance and reinsurance industry will be liable for an industry loss of around $7 billion from hurricane Matthew’s impact on the United States.

Summer flooding from extreme rainfall and storms that affected the Yangtze River basis and north-northeastern China resulted in economic losses of over $38 billion, but just 1.5% or $596 million was covered by insurance, according to reinsurance broker Aon Benfield.

The World Bank has been helping countries to access the capital markets for catastrophe insurance and disaster risk transfer for over a decade, but now the organisation is looking to the catastrophe bond structure as a way to help mitigate other kinds of risks.

Updated Oct 13th, 14:00 BST 10:00AST: Hurricane Nicole has remains a very strong Category 3 hurricane, with sustained winds of 125mph and higher gusts, and continues to track towards Bermuda where its large eye is forecast to pass very close to or even over the island.

In response to recent merger and acquisition (M&A) activity in the global reinsurance market and the potential for it to increase, Fitch Ratings has suggested that alternative reinsurance capital could expand and replace any lost capital.

Continued expansion of the insurance-linked securities (ILS) market into new business lines and geographies will require creativity and innovation, according to Paul Schultz, Chief Executive Officer (CEO) of Aon Securities.

The Comet Pension Scheme, a closed defined benefit pension fund, is set to allocate more capital to insurance-linked securities (ILS) as part of a new discretionary alternatives mandate that includes some ILS, adding to an allocation it already had with ILS manager Leadenhall Capital Partners.

Insurance industry think tank, the Geneva Association (GA), has underlined the necessity of reducing the financial impact of extreme weather events across the globe, an area where the features and capacity of the ILS market has the potential to play an important role.

We’re launching our latest conference to a wider audience today. Artemis ILS NYC 2017, our first U.S. event, was announced to our newsletter subscribers yesterday and now registration for the conference is open to the world.

Heritage Insurance Holdings Inc. said it expects its losses from hurricane Matthew will be less than $100m, with losses above a $40m retention falling within the insurers reinsurance tower but missing the $727.5m of Citrus Re catastrophe bonds.