Catastrophe bonds and insurance-linked securities news

Broker Aon has reset its Executive Committee following the collapse of its acquisition of rival insurance and reinsurance broker Willis Towers Watson (WTW).

The Red Cross, working alongside insurance-linked securities (ILS) risk securitisation facilitator and risk transfer consultancy Replexus Group, is developing a solution to promote nature-based solutions to disaster risk, financed partly through the use of catastrophe bonds, as well as other humanitarian and development scenarios.

The U.S. Federal Emergency Management Agency (FEMA) is planning to sponsor another FloodSmart Re catastrophe bond to provide flood reinsurance to the National Flood Insurance Program (NFIP) and is seeking proposals from potential reinsurance transformer partners.

The fact foreign donors paid for the premiums associated with Jamaica’s first catastrophe bond does not mean it was a “handout” the country’s Minister of Finance has explained.

After several years of rate and term improvements, notably in the property catastrophe arena, there are signs the market is levelling off. But generally, returns in the insurance-linked securities (ILS) market remain attractive, according to industry experts.

The California Climate Insurance Working Group has issued a report detailing 40 state and local policy recommendations covering resilience building and risk transfer, with an over-arching theme that suggests innovative climate insurance and risk transfer is required, especially integrated solutions that consider communities alongside risk reduction.

If Singapore and Hong Kong are able to establish themselves as valuable domiciles for insurance-linked securities (ILS) business, it should spur local reinsurers to develop capabilities as the investor base swells in tandem.

RenaissanceRe, the Bermuda-based reinsurance firm and third-party capital management specialist, raised additional funds from investors for its managed insurance-linked securities (ILS) fund strategies during the second-quarter.

For the second year running the California Wildfire Fund has shied away from buying reinsurance or any form of risk transfer, saying that current market pricing means it isn’t economically worthwhile to extend the Fund’s durability.

Positive momentum in the catastrophe bond market could drive issuance higher and lead to a record year in 2021, according to insurance and reinsurance broker Aon.