Archive for December, 2021

Capacity to support parametric pandemic risk transfer and insurance is expected to remain limited in the United States, according to broker Willis Towers Watson, but pricing has been on the rise.

The government of the Philippines has drawn $80 million to help in the recovery from super typhoon Rai (Odette) from the World Bank supported catastrophe contingent line-of-credit it has in place through a Catastrophe-Deferred Drawdown Option arrangement, dubbed the CAT-DDO 4.

Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, said that over the course of 2021 it placed more than $300 million of gross premium directly into the capital markets, as it continued to build out its risk securitization platform.

This year, 2021, has been the most costly on record for the German insurance industry, as industry losses reached around €12.5 billion, with the largest contribution coming from the summer flooding.

Velocity Risk Underwriters LLC, the managing general agency (MGA) operation established by reinsurance, catastrophe, climate and weather risk-linked investment manager Nephila Capital, has been acquired by funds managed by Oaktree Capital Management, L.P.

Here are the ten most popular news articles, week ending December 26th 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.

This December marks the 25th anniversary, or silver jubilee, of the issuance of a landmark catastrophe bond transaction, the George Town Re Ltd. deal, since when Artemis has tracked almost $135 billion of cat bond issuance.

Carrie Lam, Chief Executive of the Government of Hong Kong, sees “enormous potential” for catastrophe bonds and insurance-linked securities (ILS) to provide important disaster risk capital to underpin risks in the Greater Bay Area.

For those in the collateralised reinsurance and insurance-linked securities (ILS) market, the recent damaging tornado outbreak and severe US weather event is most likely to manifest through challenges in renewing aggregate covers and quota share arrangements, we hear.

According to Jean-Louis Monnier, head of retrocession & ILS structuring at Swiss Re Capital Markets, an “innovative subrogation extension mechanism” that featured in Farmers Insurance Group’s $160 million Topanga Re Ltd. (Series 2021-1) catastrophe bond issuance was welcomed by investors.