Archive for September, 2022

Major hurricane Ian puts a significant chunk of the global catastrophe bond market at-risk of potential losses, given there are in excess of $5 billion of US named storm specific, or well documented multi-peril cat bonds from nationwide sponsors, with Florida as a named covered state.

With major hurricane Ian approaching its Florida landfall, the main mutual insurance-linked securities (ILS), catastrophe bond and reinsurance linked investment funds have experienced some declines, with Stone Ridge Asset Management’s strategies leading the way.

As major hurricane Ian approaches Florida, it’s clear this storm could be the first major test for the re-underwriting that ILS fund markets have been undertaking over the last few years and renewal seasons, providing a test for ILS fund manager and reinsurer processes and discipline.

The major hurricane Ian landfall scenario has worsened considerably after the NHC found the storm has intensified rapidly again, to now pack 155 mph sustained winds as a high-end Category 4 storm on approach to Florida.

Descartes Underwriting, an insurance technology (insurtech) focused managing general agency (MGA) that specialises in parametric and data-driven risk transfer products, has promoted one of its senior employees Lukas Schönach to become its Global Origination Practice Lead.

Major hurricane Ian’s impacts and losses are set to add to the capital pressure experienced by Floridian primary insurers and even the state’s new $2 billion Reinsurance to Assist Policyholders program is unlikely to make insurers whole again, given they now lack private reinsurance protection.

Hurricane Ian remains a strong and dangerous Category 3 major hurricane with 120 mph sustained winds as it approaches Florida and already its effects are being felt, with storm surge flooding reported across the Lower Florida Keys and tropical storm force winds now hitting the state.

The forecast models have been updated again and once more major hurricane Ian’s forecast path has shifted east a little further, bringing the landfall on Florida’s west coast slightly earlier and just slightly south of Tampa Bay, near to Sarasota.

The Demex Group, a climate risk focused insurtech that aims to deliver climate-resilience through financial risk solutions on a global scale, has made a key hire, appointing Matt Coleman who most recently worked at Nephila Climate as its Chief Risk Officer.

Eclipse Re Ltd., a private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform owned and operated by Artex Capital Solutions, has completed two more issuances of private cat bond notes, totalling $76 million of new risk capital issued.