Catastrophe bond news

The insurance and reinsurance industry has organised itself to address existential issues related to climate change risk and the industry has shown “genius” by recognising that catastrophes and weather disasters could become increasingly severe in the future, according to Mark Carney.

A new cyber exposure model has been launched, called Cyber Foresight, designed to assist with pricing and the assessment of cyber risks, the tool could help reinsurance and insurance-linked securities (ILS) capacity have a more influential impact on the growing threat of cyber attacks.

Here are the ten most popular news articles, week ending 25th September 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.

A historic development has occurred in the United States which could see more flood insurance risk making its way into the reinsurance and capital markets, as FEMA has bought its first ever reinsurance cover for the National Flood Insurance Program.

Following the completion of the Market Re Ltd. (Series 2016-5) catastrophe bond, Jardine Lloyd Thompson Capital Markets (JLTCM) expects to see further innovation around weather bonds, highlighting the willingness of the ILS market to assume this risk.

The Board of Trustees of Stone Ridge Trust, the Trust that oversees some of U.S. mutual fund and insurance-linked securities (ILS) investment manager Stone Ridge Asset Management’s strategies, has approved the consolidation of two of its reinsurance mutual funds.

Artemis recently spoke with Sid Ghosh, Vice President, Senior Analyst at Moody’s Investors Service about the prospects for the insurance-linked securities (ILS) space, the sustainability of reinsurers’ ROE’s and what might happen at the key January 1st 2017 renewal season.

Guernsey is seeking to build on its insurance-linked securities (ILS) and collateralised reinsurance activity by adding legislation to allow for special purpose insurance (SPI) vehicles, which could be catastrophe bond issuers, for the end of 2016.

With insurance penetration across Asia poised for growth, the evolution of the sector and Asian investors’ increasing search for yield, uncorrelated returns, and a transition to investing in a portfolio context, will increase ILS investment, according to industry executives.

Rating agency Moody’s Investors Service has published an updated version of its rating methodology for catastrophe bonds, clarifying the firms approach to monitoring in-force cat bonds and mortality bonds, while making editorial changes to the methodologies text for clarity.