reinsurance

Hurricane Ian remains a strong and dangerous Category 3 major hurricane with 120 mph sustained winds as it approaches Florida and already its effects are being felt, with storm surge flooding reported across the Lower Florida Keys and tropical storm force winds now hitting the state.

The forecast models have been updated again and once more major hurricane Ian’s forecast path has shifted east a little further, bringing the landfall on Florida’s west coast slightly earlier and just slightly south of Tampa Bay, near to Sarasota.

The Demex Group, a climate risk focused insurtech that aims to deliver climate-resilience through financial risk solutions on a global scale, has made a key hire, appointing Matt Coleman who most recently worked at Nephila Climate as its Chief Risk Officer.

Eclipse Re Ltd., a private syndicated collateralised reinsurance note, private catastrophe bond issuance and reinsurance transformer platform owned and operated by Artex Capital Solutions, has completed two more issuances of private cat bond notes, totalling $76 million of new risk capital issued.

So far, major hurricane Ian’s approach to the west coast of Florida and the Tampa Bay region has not stimulated a significant amount of catastrophe bond trading, with the secondary market relatively quiet. Except for one telling trade that shows investor nerves over potential storm surge impacts are rising.

Twelve Capital, the insurance-linked securities (ILS) and reinsurance linked fund manager, agrees with other opinions that recent super typhoon Noru may cause a default of the Philippine government’s World Bank facilitated IBRD CAR 123-124 catastrophe bond.

The challenges that have been and continue to be faced by Florida’s property insurance marketplace effectively raise the risk of more financial impacts for Florida’s taxpayers, should a major loss event occur from hurricane Ian, it seems.

This morning, hurricane Ian has reached major Category 3 status and has strengthened further to 125 mph sustained winds, but more concerning for insurance, reinsurance and ILS market interests is the fact the forecast cone and track has shifted further east again, showing a landfall or very near pass to the Tampa Bay area.

Driving home the continued uncertainty over the eventual insurance, reinsurance and insurance-linked securities (ILS) market impact from hurricane Ian, investment manager Twelve Capital said that modelled loss scenarios range from substantial to nothing for its ILS portfolios.

The insurance-linked securities (ILS) marketplace is looking particularly attractive at this time, with returns rising on the back of hardening reinsurance rates and greatly improved contract terms having been enforced through recent rounds of renewals.