parametric trigger

The government of Morocco is now aiming to prepare a regulatory framework to allow for the securitization of insurance risks, including through catastrophe bonds, as the country seemingly aims to support issuance as well as to be a beneficiary of risk transfer to the capital markets.

Liberty Mutual Reinsurance (LM Re) part of Liberty Mutual Insurance Group, and Celest.Science have announced a collaboration to explore the development of a potential fallback methodology intended to support event characterisation for parametric tropical cyclone insurance when crucial weather data is either unavailable or delayed.

Hannover Re’s seventh catastrophe bond offering in the annual Acorn Re parametric US earthquake series of deals has now been successfully priced at the bottom of initial guidance, to secure a 125% upsized $450 million of reinsurance limit from the Acorn Re Ltd. (Series 2026-1) cat bond issuance, Artemis has learned.

CCRIF SPC, the regional parametric risk pool for the Caribbean and Central America, has announced that the United Nations World Food Programme (WFP) has become the first UN agency and multilateral organisation to join and purchase parametric insurance from it.

Hannover Re has for a second time increased the target size of what will be the seventh catastrophe bond offering in the annual Acorn Re parametric US earthquake series of deals, now seeking $450 million of limit from the Acorn Re Ltd. (Series 2026-1) issuance, Artemis understands.

The Government of Mexico has received its first World Bank Catastrophe Deferred Drawdown Option (Cat DDO), which will help the country prepare better and respond more quickly to natural disasters, while also complementing both of its IBRD CAR Mexico 2024 and IBRD CAR Mexico 2024 (Pacific) catastrophe bonds and parametric insurance protection.

Hannover Re’s seventh catastrophe bond offering in the annual Acorn Re parametric US earthquake series of deals looks set to grow, as the target size for this issuance has been raised by 75% to now seek $350 million of limit from the Acorn Re Ltd. (Series 2026-1) issuance, sources have said.

Arbol, the technology-led underwriter of parametric risk transfer, climate, and weather re/insurance business, has designed a parametric product that aims to transfer the risk of government-imposed moratoriums on data center construction projects.

After the devastating impacts of hurricane Melissa triggered a full $150 million payout of its IBRD CAR Jamaica 2024 parametric catastrophe bond, the rapid funding from this insurance product helped the country recover its electricity network faster than would have otherwise been possible, the government’s Chief Fiscal Economist explained last week.

The Asian Development Bank (ADB) is actively promoting catastrophe bonds for sovereign disaster risk financing across the region, but Thomas Kessler noted last week that this will require cooperation across governments, research and modelling institutions, insurers and the ILS investor base.