risk transfer

The Board of Florida’s Citizens Property Insurance Corporation has approved the 2016 risk transfer and reinsurance program, including the shift of certain traditional layers to a per-occurrence, single-year structure and the acquisition of an additional contract for commercial reinsurance.

Florida’s Citizens Property Insurance Corporation’s risk transfer and reinsurance buying strategy continues to evolve, with the insurer electing to renegotiate multi-year aggregate reinsurance and shift the protection to per-occurrence coverage for the 2016 hurricane season.

The CCRIF SPC, formerly known as the Caribbean Catastrophe Risk Insurance Facility, has received fresh backing from the World Bank and the European Commission to help to broaden the access to its parametric insurance products across Central America and the Dominican Republic.

According to Willis Towers Watson the energy industry faces a huge insurance shortfall, leaving many of the world’s largest energy companies exposed as they often find it hard to secure the level of insurance protection they really require.

Swiss Re has collaborated with Veolia and The Rockefeller Foundation, revealing a new scheme designed to improve the resilience of cities and their infrastructure in the face of natural catastrophes or weather disasters. A venture that also has the potential to originate new risk for the reinsurance giant.

According to China’s government Ministry of Civil Affairs, natural catastrophes and severe weather events cost the country a huge $41 billion of economic losses in 2015, a number that is far above the total covered by insurance and reinsurance.

To further expand and develop the overall insurance-linked securities (ILS) pie the market needs to add greater transactional efficiency, and also access more original risk, according to Tom Johansmeyer, assistant vice president, Reinsurance Services, ISO.

The RE:bound program, a partnership between re:focus partners, risk modeller RMS, reinsurance firm Swiss Re and The Rockefeller Foundation, has released a new framework that leverages the catastrophe bond structure for the financing of resilient infrastructure projects.

Catastrophe bonds are an innovative financial tool that can be leveraged in the goal to provide the world with access to the $200-$300 billion of capital required to help countries combat climate change shocks, according to the Rockefeller Foundation.

As part of a new environmental policy at the investment bank, Goldman Sachs will focus on developing new models and use-cases for catastrophe bonds, aiming to help clients mitigate climate risk impacts as well as for financing resilience.