Coronavirus news, analysis and information of relevance to the insurance-linked securities (ILS), catastrophe bond and reinsurance capital markets.
The coronavirus Covid-19 outbreak of 2019/20 caused significant disruption and threatened losses across insurance and reinsurance markets, with some ramifications for ILS and cat bond investors and sponsors as well.
The U.S. House Financial Services Committee, which oversees and makes recommendations on legislation relating to financial services including insurance, has called for the passing of a Pandemic Risk Insurance Act (PRIA).The idea is to provide a reinsurance backstop to cover losses to the insurance sector from future pandemic outbreaks like read the full article →
The Covid-19 coronavirus pandemic is having an evident effect on the catastrophe bond market, seen largely in the secondary market but with expected future ramifications for primary cat bond issuance market conditions as well, according to executives at Schroder-Secquaero.At the same time, the private ILS market is currently outperforming as, read the full article →
The London market insurance and reinsurance sector is at-risk due to the Covid-19 coronavirus pandemic, causing Fitch Ratings to revise its outlook on this core marketplace to negative.Yesterday, we reported that Fitch had revised its outlooks for the global reinsurance market and U.S. Property & Casualty insurance to negative from read the full article →
The Government of Hong Kong has introduced a bill to amend its insurance regulation to allow for insurance-linked securities (ILS) such as catastrophe bonds to be issued and will seek to pass it rapidly given the uncertainty caused by the coronavirus outbreak.The Insurance (Amendment) Bill 2020 was gazetted on March read the full article →
The payout from the World Bank issued pandemic catastrophe bonds, as well as the pandemic risk-linked swaps that were issued at the same time, may reach just under $196 million in total, if the ongoing Covid-19 coronavirus outbreak triggers the financial instruments.The impact from the Covid-19 coronavirus pandemic has more read the full article →
Underlining the magnitude of the challenge that the Covid-19 coronavirus poses to the re/insurance industry, Fitch Ratings has revised its outlooks for the global reinsurance market and U.S. Property & Casualty insurance to negative.The fundamentals or sector outlook for the reinsurance market and U.S. P&C insurers have both been revised read the full article →
Automatic extensions of in-force contracts due to coronavirus not feasible for ILS market: Lohmann, Schroders
Broker Willis Re has requested markets, both traditional and ILS providers of reinsurance and retrocession, consider offering automatic extensions of in-force contracts by two months at the cedent’s discretion due to possible delays caused by the coronavirus to smooth the renewal process, but this is something that capital markets collateralised read the full article →
The catastrophe bond market is once again demonstrating its financial liquidity, as secondary trading volumes have risen driven by certain investors looking to sell their positions at a time when volatility in the broader financial markets is extremely high due to the coronavirus pandemic.Catastrophe bonds have demonstrated their liquidity benefits read the full article →
The Vitality Re series of health insurance-linked securities (ILS) transactions, which provide reinsurance protection to health insurer Aetna, are exposed to potential triggering by the coronavirus pandemic should it result in "severe morbidity stress", rating agency S&P has said.The Vitality Re series of health ILS transactions are a way for read the full article →
As the reinsurance and insurance-linked securities (ILS) community adapts to full remote operations and working from home, this industry that has thrived on face-to-face contact now needs to rapidly embrace the electronic trading and risk transfer tools that are available to it.In these uncertain and challenging times, as the Covid-19 read the full article →