Archive for June, 2017

AXA Global Parametrics, the unit of insurer AXA that focuses on providing clients with parametric insurance underwriting and risk transfer solutions, is to begin offering its capacity as a protection seller through the Speedwell Weather owned parametric weather risk transfer platform weatherXchange.

A number of bills aimed at reforming the U.S. National Flood Insurance Program (NFIP), in order to make it a more sustainable system and to factor in more private market insurance and risk transfer, have been passed by the House Financial Services Committee and will now move onto the full House of Representatives for deliberation.

Industry loss triggers continue to play a vital role in risk transfer transactions, such as catastrophe bonds, industry loss warrants (ILW’s) and other private ILS or collateralized reinsurance arrangements, and now PERILS AG has reached $14.2 billion of limit placed using its triggers and data.

Another catastrophe bond has been priced at the bottom end of an already reduced spread range, as sponsor Assicurazioni Generali S.p.A. has secured its latest catastrophe bond, the Lion II Re DAC European flood exposed transaction, at a very competitive rate.

The latest catastrophe bond transaction to be sponsored by Bermuda-headquartered specialty insurance and reinsurance firm AXIS Capital Holdings Ltd. is set to upsize by 40%, as its Northshore Re II Ltd. (Series 2017-1) transaction grows to $350 million, while the price guidance has tightened.

The ILS and collateralized reinsurance market is facing its own excess capacity issue currently, with a number of ILS fund managers still having capital to deploy even after the key June Florida renewals, according to TigerRisk Capital Markets & Advisory.

Generali’s latest EUR 200 million catastrophe bond, the Lion II Re DAC transaction that looks to secure reinsurance protection against European perils including flood risks, has seen its suggested coupon fall below the initial launch guidance, as ILS investors demonstrate their comfort with the first Euro flood indemnity triggered bond.

Insurance claims filed in both personal and commercial lines that will fall to private insurers after the 14th November Kaikoura earthquake have now risen to NZ $1.84 billion (approximately US $1.33 billion), according to the latest data from the Insurance Council of New Zealand.

Tropical storm Cindy was named yesterday, as the third official storm of the 2017 Atlantic Tropical Storm & Hurricane Season, and has intensified to now carry 60mph sustained winds with torrential rainfall and flash flooding now a threat across areas of the U.S. Gulf Coast.

Global reinsurance firm Swiss Re has identified a number of opportunities in the renewable energy production arena where demand for risk transfer is likely to increase considerably and parametric or index triggers are eminently suitable, an opportunity the ILS market is also targeting.