Catastrophe bond news

The past 12-months have been both educational and reassuring for the insurance-linked securities (ILS) market and its participants, as the market learned that its structures do in the main respond as designed.

Hurricane Dorian has begun to weaken somewhat as it lashes the North Carolina coast, with flooding from storm surge and rainfall reported in some areas, as well as wind damage. The storm is now expected to sustain its hurricane force winds right up into eastern Canada and the surrounding region.

Global reinsurance firm Swiss Re is re-organising its insurance-linked securities (ILS) and retrocessional capabilities, merging ILS and retro teams within one new unit named Alternative Capital Partners (ACP).

While capital inflows have begun again in the insurance-linked securities (ILS) sector, the fact that they took a pause and ILS capacity retreated slightly before this shows that the ILS market has become more selective, according to Fitch Ratings.

There has been a distinct slowdown in cat bond issuance throughout 2019 after the heavy loss experiences of the past two years, but Appleby’s Brad Adderley maintains that the market is “here to stay” and remains poised for further growth in the years ahead.

Hurricane Dorian’s category 5 winds and devastating storm surge are expected to result in combined insurance and economic costs of at least $7 billion, according to an estimate from Karen Clark & Company.

Hurricane Dorian remains a dangerous storm offshore of the southeastern United States, but it has weakened very slightly back to Category 2 status although still poses a dangerous threat to the Carolinas where a landfall remains possible.

The use of informal data sources as inputs to industry loss warranty (ILW) triggers can cause issues related to collateral such as its trapping and produce additional basis risk, according to Property Claim Services (PCS).

France headquartered global reinsurance firm SCOR is aiming to become the “reinsurance company of tomorrow” with its latest strategic plan, part of which also includes capitalising on its position in the insurance-linked securities (ILS) market.

Property Claim Services (PCS) has launched Mexico as the latest addition to its range of industry loss data aggregation and index reporting services, teaming up with Asociación Mexicana de Instituciones de Seguros (AMIS) for PCS Mexico.