Reinsurance News

The Natural Disaster Fund (NDF), a public-private partnership funded by UK and German governmental entities and managed by Global Parametrics, has made US $1.45 million in payouts in Grenada after a windspeed cat-in-a-polygon parametric arrangement was triggered by hurricane Beryl.

Broking giant Aon has announced the hire of Ed Thomas as its new Head of Lloyd’s Capital, with the new addition bringing experience gained in the development of the London Bridge insurance-linked securities structures specific to the Lloyd’s marketplace.

Progressive, the US primary insurance giant, has reversed its previously announced $95.1 million reinsurance recovery from May, saying that its loss estimates have now fallen. But the insurer noted that its aggregate reinsurance remains near its attachment.

Jamaica’s recovery from the impacts of major hurricane Beryl is set to benefit from an additional roughly US $10.3 million payout by the CCRIF SPC, after the storm triggered its excess rainfall policy under the parametric risk transfer facility.

Insured losses from natural catastrophes are expected to continue rising faster than economic growth and while, for now, the insurance and reinsurance market recalibrates its models to these higher loss trend, it requires more resources (capacity) to meet this growing need for disaster protection, Swiss Re has explained.

The US private market insurance industry loss from recent hurricane Beryl’s impacts is estimated to fall in a range of $2.5 billion to $4.5 billion by Moody’s RMS, with the risk modeller saying that its best estimate for the industry loss is $3.7 billion.

Artex, the captive, alternative risk transfer, insurance-linked securities (ILS) facilitation and capital solutions subsidiary of Gallagher, has announced the launch of its first Vermont protected cell company, named Artex Axcell PCC (Vermont), Inc.

Parametrix, a specialist in parametric cloud downtime cyber insurance and reinsurance protection, has secured a $50 million cover for a US retailer, with the assistance of Aon, Howden and with a range of re/insurers backing the deal.

Reinsurance broker Guy Carpenter is rolling out a new parametric flood product that has been designed to enable risk transfer for large portfolios of exposure across wide-areas. The FloodShield triggers are structured with the help of Floodbase, KatRisk, and ICEYE, plus this could be a solution that utilises ILS market capacity in future.

While cyber insurance pricing seems to have levelled off in 2023, rating agency AM Best noted that more can be done to attract capital to the segment, including through the provision of greater clarity on cyber risks that are considered systemic.