indemnity trigger

2025 saw a long-standing pattern reverse within the catastrophe bond market, as diversifying risks began offering spreads comparable or higher than those of traditional peak perils, while valuations between index-linked and indemnity structures normalised, Florian Steiger, CEO of Icosa Investments AG highlighted in a recent report.

A recent report from UBS Group’s global wealth management arm has highlighted catastrophe bonds as a growing sustainable investment opportunity, emphasising their role in climate adaptation and financial protection against extreme weather events.

The shift towards indemnity triggers in the insurance-linked securities (ILS) market has accelerated in 2018, but alternatives such as industry loss index triggers and parametric triggers remain important as well, with the potential to have meaningful impact, according to Willis Re’s ILS team.

An interesting question was raised at the recent 2014 Bermuda in Boston conference held by investment bank Macquarie, whether ILS investors are being compensated sufficiently for uncertainty in some indemnity catastrophe bonds and ILS transactions.

Property Claims Services (PCS), a division of Verisk and the leading source of data on insured property losses from catastrophes in the U.S., has published an interesting report on indemnity catastrophe bonds today. The report highlights, what PCS considers, five key issues that investors in indemnity cat bonds need to be aware of.

The year 2012 saw the highest level of indemnity trigger based catastrophe bond issuance on record, with more than 50% of all cat bond volume issued exposed to the indemnity losses of the sponsoring insurer or reinsurer, according to data from Swiss Re’s latest insurance-linked securities market report. The report suggests that this shows that […]