Archive for April, 2020

Three outstanding tranches of catastrophe bond like notes have all had their maturities extended again given the risk of losses to investors in these transactions, two of which are expected to be a total loss and one we cannot be sure about the future for.

The sudden rise in deaths in the United Kingdom due to the Covid-19 coronavirus pandemic could result in some pensions having to post more collateral against their longevity swaps, as report suggest.

City National Rochdale’s industry loss warranty (ILW) focused mutual insurance-linked securities (ILS) investment fund grew during the last quarter and saw “positive opportunities” at the January reinsurance renewals, with an expectation of the ILW market seeing dynamic conditions and improving returns.

Australia headquartered global insurance and reinsurance group QBE has announced a range of actions being taken to shore up its regulatory capital as a direct response to the Covid-19 pandemic, including buying more catastrophe reinsurance to reduce its exposure to U.S. perils.

AXA Climate, the parametric specialist risk transfer unit of global insurance and reinsurance company AXA, has partnered with Dutch satellite technology firm VanderSat on a range of products to enable drought and soil moisture related exposures to be hedged.

The World Bank issued pandemic catastrophe bonds, as well as the pandemic risk-linked swaps that were issued at the same time, have not yet been triggered by the Covid-19 coronavirus pandemic as the growth rate hasn’t reached the necessary level to breach the parametric trigger.

The month of March 2020 saw billions of dollars of economic and insured losses caused by a number of outbreaks of severe and convective weather, characterised by hail and tornadoes as well, according to Aon’s Impact Forecasting.

Here are the ten most popular news articles, week ending 12th April 2020, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

Retrocessional contracts are seen as likely more exposed to any claims that find their way through from the Covid-19 coronavirus pandemic, according to the respondents to our recent market survey.

As our sister publication Reinsurance News reported yesterday afternoon, Lloyd’s has asked its members that have been hit by sizeable losses as a result of the Covid-19 coronavirus pandemic to accelerate capital injections with the goal of stabilising the markets capital position.