Archive for June, 2021

After a weekend of discussions in Cornwall, UK, leaders of the G7 (Group of Seven) economies have made a range of commitments to expanding climate and disaster risk insurance, alongside other climate financing pledges.

In our discussions with managers of insurance-linked securities (ILS) funds and other collateralized reinsurance structures around the mid-year renewal season, one fact that has become increasingly clear is that many ILS fund managers are taking the opportunity supplied by the improved rate environment to move higher up the risk tower.

Traditional reinsurance capacity continues to dominate the reinsurance program of New Zealand’s state-owned residential property disaster insurance entity the Earthquake Commission (EQC), with fronted capacity from alternative or ILS markets only contributing a “small share” in 2021.

Here are the ten most popular news articles, week ending 13th June 2021, 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.

The insurance-linked securities (ILS) market needs to work to “build more bridges from capital markets back into the risk bearing markets” to drive continued growth, according to Stephan Ruoff, Global Head of Insurance-Linked Securities (ILS), Schroders Capital.

According to a report from Reuters, the European Commission (EC) may approve Aon’s $30 billion acquisition of and merger with Willis Towers Watson (WTW) before the end of this month, which would be in advance of the EC’s own deadline.

Two recent earthquake events in Asia have triggered payouts under parametric insurance policies, further demonstrating the valuable protection a well-structured parametric trigger can provide.

Hudson Structured Capital Management Ltd., undertaking its insurance and reinsurance investment business as HSCM Bermuda, has invested in home and auto insurtech firm Branch for a second time, participating in a $50 million Series B fund raise.

Vermont Mutual Insurance Company is targeting an increased size for its first Baldwin Re Ltd. (Series 2021-1) catastrophe bond, with the issuance now set to provide it with $150 million of reinsurance cover against losses from multi-peril events in certain north east US states.

In a new report referencing Artemis Deal Directory data, Moody’s Investors Service highlights that renewed and rising demand for catastrophe bonds among insurance-linked securities (ILS) investors has served to drive spreads lower.