Parametric insurance news

Broker Gallagher Re and parametric specialist insurer African Risk Capacity Ltd (ARC Ltd) have together structured and placed a new parametric reinsurance solution to provide responsive financial protection to the UN World Food Programme’s (WFP) operations in the Sahel region.

The Acorn Re Ltd. (Series 2024-1) parametric earthquake catastrophe bond issuance has now been priced and its details finalised, with the issuance successfully upsized to provide $450 million of protection, while pricing was fixed below the initial guidance that was offered, Artemis can report.

For global reinsurance firm Hannover Re, the business of collateralized fronting, where the company fronts reinsurance cedents for ILS investors and funds, is seen as a very important element of its business and an area of growth, executive Thorsten Steinmann said this week.

We’ve learned that the targeted issuance size has increased to as much as $450 million for the Acorn Re Ltd. (Series 2024-1) parametric earthquake catastrophe bond issuance, while at the same time the price guidance has been lowered to below the initially offered range.

Lloyd’s has announced the launch of a new disaster resilience vehicle working with the United Nations Capital Development Fund (UNCDF), with the global reinsurance market expected to be tapped to support the delivery of a parametric disaster insurance product for Small Island Developing States (SIDS) in the Pacific.

African Risk Capacity Limited (ARC Ltd.), the financial affiliate and parametric insurance underwriting entity of the African Risk Capacity (ARC) Group, is continuing to expand its risk pool, with the latest addition being Ghana, whose government has just purchased its first sovereign parametric drought insurance policy.

African Risk Capacity Ltd. has provided parametric insurance and Munich Re has provided parametric reinsurance to support an innovative disaster-adapted loan offering from the West African Development Bank (BOAD).

The use of risk transfer and insurance arrangements are seen as a supporting mechanism for unlocking capital to power net zero and to protect natural assets, with scaled up use of parametrics seen as key, according to a new report from Howden and Pollination Group.

A joint report published by insurance giant Generali and the United Nations Development Programme (UNDP) highlights parametric risk transfer and insurance as a key solution that can help to close the US $1.8 trillion protection gap.

There is a new parametric earthquake catastrophe bond transaction in the market, the fifth in the series of Acorn Re deals. But for the first time this $400 million Acorn Re Ltd. (Series 2024-1) issuance features two tranches of notes, each with a different duration of coverage, Artemis has learned.