resilience bond
Insurance & ILS are shock absorbers for climate, but need adjusting to the risk: McKinsey
Insurance products, reinsurance and insurance-linked securities (ILS) are all examples of financial shock absorbers for climate change risks, but while it can encourage behavioural change through the sending of price signals, a new report from McKinsey highlights the reality that the sector business models may need to change.Leaders in business, read the full article →
Climate & environmental issues are top global risks for 2020: Marsh & Zurich
For the first time in the history of the annual World Economic Forum's Global Risks Report all of the top five global risks in terms of likelihood are related to climate change and environmental issues.The report highlights the growing global awareness of the threat that climate related risks pose to read the full article →
Institutional investors backing ILS call for climate action
The world's largest institutional investors are increasingly vocal about the need to accelerate efforts to tackle the climate crisis, with many of the same group also contributing a significant proportion of the insurance-linked securities (ILS) market's capital base.Last week, 631 institutional investors which between them are responsible for managing more read the full article →
Goldman Sachs reiterates cat bond & ILS role in environmental policy
Investment banking giant Goldman Sachs published an updated environmental policy yesterday, with catastrophe bonds, insurance-linked securities (ILS) and other climate related risk and reinsurance products again taking a central stage within it.Goldman Sachs recognises the importance of climate adaptation and the opportunity for its business in this area, with its read the full article →
Climate threat needs capital response, but industry has to give it confidence
The economic consequences of climate change may prove particularly severe for insurance and reinsurance companies in the property and casualty (P&C) space, presenting both a threat and an opportunity, but the latter may require access to capital to take full advantage of it.Recently, rating agency Moody's reiterated its stable outlook read the full article →
Climate change adaptation financing can benefit from partnership with ILS
Climate change adaptation projects and the need for them are rising up the agenda, as a recent surge in damages from severe weather and climate related catastrophe events concentrates the mind on the importance of investing in this area.Public authorities are showing renewed and increasing interest in climate adaptation, while read the full article →
Coalition for Climate Resilient Investment targets resilience bonds
A newly launched Coalition for Climate Resilient Investment is set to bring together significant investment and risk industry expertise, with goals including to properly price climate risk, align investment flows with resilience initiatives and to introduce resilience bonds.The Coalition for Climate Resilient Investment was officially launched yesterday at the United read the full article →
Physical & financial effects of climate change are accelerating: WMO
The physical and financial impacts of climate change are accelerating, according to the World Meteorological Organization, who says that record greenhouse gas concentrations are pushing global temperatures towards increasingly dangerous levels.The impacts and effects of climate change on the frequency, intensity and overall occurrence of severe weather related catastrophes and read the full article →
Yesterday’s climate tail risk closer to today’s central scenario: Mark Carney
Insurance and reinsurance companies are on the "front line of managing the physical risks from climate change" and are now aware that "yesterday’s tail risk is closer to today’s central scenario," according to Mark Carney, Governor Bank of England.Of course insurance-linked securities (ILS) funds and their investors are also on read the full article →
Closing the insurance gap needs capital market support: Lloyd’s
In order to close the insurance protection gap the world's oldest insurance and reinsurance market, Lloyd's of London, says that capital market investment, channeled through insurance-linked instruments, is going to be a key tool to help achieve this.Lloyd's notes in a release today that efforts to close the disaster protection read the full article →
