Catastrophe bond news

Here are the ten most popular news articles, week ending 23rd October 2016, 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.

Parametric catastrophe insurance facility CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) has once again demonstrated the vital role that the parametric trigger can play in disaster insurance as it pays out all $29.2m of hurricane Matthew claims in less than 14 days.

Product innovation within the insurance-linked securities (ILS) space is key to market’s development and usually acts as a catalyst for expansion, a trend that will need to continue to enable the capital markets to play a bigger role outside of the catastrophe space, according to industry leaders.

Trading in catastrophe bonds on the secondary market saw increased activity in September as ILS investors and ILS funds traded positions and prices rose once again as seasonal spread tightening reached what is normally recognised as its peak.

Pricing in the insurance-linked securities (ILS) and catastrophe bond market in the third-quarter of 2016 remained in line with recent quarters, says Munich Re, highlighting that there has been no visible sign of further downward movement in risk spreads since year-end 2014.

South Korea’s Public Officials Benefit Association, the pension fund manager for government workers pensions and among the largest public pensions in the world at over US$7 billion in assets, has selected LGT ILS Partners, Leadenhall Capital Partners and Nephila Capital for its first ILS mandate.

Here are the ten most popular news articles, week ending 16th October 2016, 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.

The CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility), is set to pay out another $8 million due to hurricane Matthew’s path through the Caribbean, as parametric excess rainfall insurance payouts are now due to four countries.

One of the catastrophe bonds which had traded at a reduced price due to the approach of hurricane Matthew has bounced back. The First Coast Re Ltd. (Series 2016-1) cat bond had traded as low as 62 cents on the dollar on Thursday 6th but bounced back to above par at 102 on Tuesday 11th.

The World Bank has been helping countries to access the capital markets for catastrophe insurance and disaster risk transfer for over a decade, but now the organisation is looking to the catastrophe bond structure as a way to help mitigate other kinds of risks.