Archive for October, 2019

Giant Canadian pension funds Caisse de dépôt et placement du Québec (CDPQ) and Ontario Teachers’ Pension Plan (OTPP) have together invested $500 million in Constellation Insurance Holdings, a start-up launched by the former Prosperity Life CEO Anurag Chandra.

The African Risk Capacity (ARC) is continuing to make progress towards the launch of its Extreme Climate Facility (XCF), a proposed multi-year funding mechanism that will issue climate change catastrophe bonds to help African nations transfer climate change related exposure to the capital markets.

Industry losses from the flood driven damage of typhoon Hagibis could reach into the double-digit billion dollar range, according to ILS manager Twelve Capital, who also highlighted that in the ILS market it is collateralised retrocession that appears most at risk of performance impacts.

Nephila Capital senior executive Barney Schauble has helped to fund the launch of a new initiative from non-profit Ceres that aims to accelerate efforts in the capital markets to reduce the worst financial impacts of the global climate crisis and other sustainability threats.

Typhoon Hagibis loss impact on insurance, reinsurance and insurance-linked securities (ILS) markets is likely to drive further rate improvements at upcoming renewals, but the market should watch out for potential loss creep, analysts at KBW warn.

Jamaica’s mission to secure catastrophe bond coverage as part of its disaster risk financing plan continues, with progress being made in terms of risk modelling while the World Bank has funded the country to help in paying cat bond premiums to investors.

U.S. primary insurer Travelers catastrophe and severe weather losses have now eaten 92% of the way through the $1.3 billion retention sitting beneath the insurers new $500 million aggregate reinsurance cover.

Reinsurance, catastrophe, climate and weather risk-linked investment manager Nephila Capital will add a new primary source of risk from another eastern U.S. state, after its managing general agency (MGA) Velocity Risk Underwriters LLC has expanded into New Jersey.

Typhoon Hagibis is estimated as likely to cause an insurance and reinsurance market loss somewhere in a range from $8 billion to as much as $16 billion, by AIR Worldwide.

Update: Industry loss estimates have risen, with the latest suggesting a $2 billion insured loss from the tornadoes. Original article: The insurance and reinsurance industry is likely to face losses that rise into the billions of dollars following a storm system that caused a significant tornado in the Dallas, Texas area on October 20th.