drought
La Niña conditions declared for the Pacific
The Australian Bureau of Meteorology (BOM) has declared La Niña conditions for the Pacific ocean, highlighting that the event could cause weather impacts in Australia and more widely, which has ramifications for insurance and reinsurance market interests. La Niña conditions have yet to be declared by the World Meteorological Organization (WMO), read the full article →
Germany helps fund parametric risk transfer premiums for ARC member nations
The German government is helping African countries to continue benefiting from parametric drought insurance protection under the African Risk Capacity (ARC), with around EUR 19 million being donated to help fund their participation during a time when fiscal budgets may be stretched by the pandemic. The German government is assuming responsibility read the full article →
Droughts, wildfires & floods cost over $7.3bn in July: Aon
Severe droughts, wildfires and flooding from torrential rain and typhoons have combined to cause in excess of $7 billion of economic losses in July 2018, with the insurance and reinsurance industry set to pay its share of the global bill. Impact Forecasting, the catastrophe risk analysis arm of insurance and reinsurance read the full article →
El Niño in decline but impacting global weather, ~50% chance of La Niña
The current near-record El Niño event appears on the wane, with conditions attributed to the phenomenon said to be in decline, but its effects set to be felt for some time to come, with insurance and reinsurance firms now turning their heads to the possible development of La Niña conditions. The read the full article →
Argentinian trio developing climate index futures for agriculture
Three Argentinian enterprises have joined forces to develop climate index futures to help agricultural producers to better protect themselves against the impacts of severe or inclement weather, with drought the first targeted product launch. The three partners are Rofex, a futures exchange in the Argentine city of Rosario, the Argentina Clearing read the full article →
As El Niño intensifies global drought losses to surpass $8bn: Aon
As the 2015/16 El Niño event intensifies there is an expectation that global economic losses from drought will surpass the previous forecasts of $8 billion, suggesting a growing toll for crop insurance, reinsurance and any ILS investors exposed to agricultural lines. Reinsurance broker Aon Benfield's risk modelling specialist unit Impact Forecasting read the full article →
Drought will become one of the most destructive natural catastrophes: Munich Re
Globally the risks posed by and impacts created by droughts and heatwaves have been growing in recent years, yet drought itself remains a widely underestimated natural hazard, according to a recent report published by the worlds largest reinsurer Munich Re. According to Munich Re's report, there have been around ten read the full article →
$23 billion global crop insurance claims in 2012 the highest ever: Munich Re
According to Munich Re, the world's largest reinsurer, global crop insurance claims in 2012 reached a massive $23 billion. Munich Re attributes as much as $15 billion of these losses in the U.S. due to the severe drought in 2012. Crop losses are growing with increasing insurance penetration and in read the full article →
Satellite data helps make drought insurance affordable for African farmers
The development of microinsurance products using satellite data to create index-based insurance products is a growing industry and one which is showing increasing promise as the pilot projects scale out to encompass thousands of policyholders. The application of satellite technologies to create indices against which insurance products can be triggered read the full article →
S&P: Drought to cause over $5 billion of crop insurance losses for private re/insurers
A report from rating agency Standard & Poor's estimates that the U.S. crop insurance and reinsurance sector will see losses of over $5 billion from the severe drought which has been affecting much of the country in 2012. S&P says that however large the loss becomes they believe it will read the full article →
