volcanic risk


Red Cross cat bond an impressive example of humanitarian ILS: Plenum

The recent completion of the world’s first pure volcanic risk catastrophe bond for its sponsor the Danish Red Cross, is an impressive example of the use of insurance-linked securities (ILS) in the humanitarian field, according to one of the investors in the bond, Plenum Investments AG. The first volcano cat bond read the full article →

Red Cross cat bond demonstrates Guernsey’s ILS credentials: Aon

The recent completion of the world's first pure volcanic risk catastrophe bond is a demonstration of Guernsey's insurance-linked securities (ILS) credentials, Paul Sykes, Managing Director at Aon has said. The volcano catastrophe bond, which was issued on behalf of sponsoring organisation the Danish Red Cross, was domiciled in Guernsey and drew read the full article →

First volcanic eruption cat bond issued for the Danish Red Cross

The very first catastrophe bond covering pure volcanic eruption risk has now been completed, with a $3 million privately placed issuance brought to market by Replexus and Howden Capital Markets and backed by leading cat bond investors for the Danish Red Cross. The catastrophe bond covers the risk of eruption of read the full article →

Red Cross’ volcano cat bond targets multi-continent coverage from Q1 issue

Over 800 million people live within 100km of an active volcano around the world. To prepare for a potential eruption, the Danish Red Cross and International Federation of Red Cross and Crescent Societies, alongside industry partners, are planning a catastrophe bond to cover risks associated with 10 volcanoes in 4 read the full article →

Red Cross volcano cat bond to be backed by Global Parametrics & DFID

Global Parametrics, the parametric and index-based disaster risk transfer company, and the UK government’s Department for International Development (DFID), have agreed in principal to provide some of the capital necessary to back the Red Cross' volcano catastrophe bond. The Danish Red Cross and International Federation of Red Cross and Crescent Societies read the full article →

Red Cross making volcano cat bond progress

The Danish Red Cross and International Federation of Red Cross and Crescent Societies are making progress with their first ever catastrophe bond transaction, revealing a tiered trigger structure designed to ensure that impactful volcanic eruptions cause the cat bond to pay out. The international humanitarian movement announced last year that it read the full article →

Indonesia tsunami insured loss estimated at $1.1 billion

The insurance and reinsurance industry may shoulder as much as $1.1 billion of claims for damage following the tsunami that struck Indonesia after the eruption of the Anak Krakatau volcano. The volcano-triggered tsunami is thought to have killed more than 430 people and caused significant damage to coastal areas, damaging hundreds read the full article →

Red Cross aims to sponsor first pure volcano cat bond

International humanitarian movement the Red Cross is looking to the capital markets and the potential issuance of a parametric catastrophe bond to protect against volcanic risks, according to Adam Bornstein. Adam Bornstein is an innovation finance specialist working in the Global Innovative Finance Team, a new unit of the International Federation read the full article →

Sompo Japan to launch parametric volcanic risk insurance

One of the largest Japanese domestic insurers, Sompo Japan Nipponkoa Insurance, is planning to offer travel or tourism companies and other potentially affected industries a parametric insurance product that pays out on a heightened threat of volcanic eruption. The parametric volcanic eruption insurance will payout based on the Japan Meteorological Agency read the full article →