catastrophe bonds

History has shown that in both soft and hard markets, the final quarter of the year is always busy, and this could be especially true this year with a solid pipeline of both cat bonds and sidecars, according to Brad Adderley, Bermuda Managing Partner, Appleby.

Activity in the catastrophe bond market during the first quarter of 2023 suggests that sponsors have built on the orderly year-end renewal, with initial indications pointing to a shift in momentum across the market, according to Aon Securities, the insurance-linked securities (ILS), catastrophe bond and capital markets arm of the insurance and reinsurance broker.

Bermuda-based insurer and reinsurer Everest Re has $350 million of catastrophe bond limit that attaches at a $48.9 billion PCS industry loss threshold for Hurricane Ian, suggesting a potential recovery should PCS’ view of the ultimate industry loss rise from its current $40.9 billion estimate.

In light of a marketplace that had slowed its growth trajectory somewhat in recent years, Fitch has underlined the need for a sustained inflow of new sponsors to drive a more dynamic, growing catastrophe bond and insurance-linked securities (ILS) sector.

Insurtech start-up FloodFlash, which offers an innovative sensor-based approach to support parametric flood insurance triggers, is scaling up its offering with the help of major reinsurance carriers to provide protection to larger corporations.

A new direct to consumer parametric earthquake insurance product has been launched for the Latin America market by Super Seguros Inc., with reinsurance backing from global player Munich Re.

The promise of parametric triggers has always been faster claims payouts, with no lengthy assessment process and while many examples payout within days of a triggering event, the fastest we’ve seen following a true weather catastrophe is the payouts made within a day of windstorm Ciara by insurtech FloodFlash.

Catastrophe risk modellers JBA Risk Management and insurtech start-up FloodFlash have teamed up to launch what they claim to be the first property level parametric flood insurance product.

There has been an exponential increase in awareness and understanding of parametric insurance, reinsurance and risk transfer solutions in recent years, but still education is lacking among protection buyers which has led specialist New Paradigm Underwriters to launch its own conference on the subject.

The final $3.3 million chunk of notes from Bermudian reinsurance firm RenaissanceRe’s $140 million Series 2017-1 issuance of notes from its Fibonacci Reinsurance Ltd. sidecar-like vehicle have now had their maturity extended into 2019, as loss development continues.