Insurance

Some of the loss hit catastrophe bonds sponsored by U.S. primary mutual insurer USAA have benefited from a return of principal with respect to previously made loss payments under certain reinsurance agreements, presumably a sign of wildfire related subrogation recoveries flowing to the benefit of cat bond funds and investors. USAA faced losses across a…

The onshore and offshore total of insurance and reinsurance market losses from recent hurricane Laura is estimated to be in the double-digit billions, between $10 billion and $15 billion by catastrophe risk modeller RMS. Of this, $9 billion to $13 billion are from onshore losses, caused by wind and surge, as well as inland flood…

Third-party, or alternative capital is unlikely to have a meaningful influence on potential reinsurance rate increases at the key January 1st, 2021 renewals season, according to Brian Schneider, Senior Director, Global Head of Reinsurance, Fitch Ratings. Speaking during the rating agency’s recently held webinar, which examined global reinsurers at the mid-year with a view to…

Property damage from the severe California wildfires continues, with now close to 4,000 structures having been destroyed in recent weeks and with a heatwave and potential record temperatures forecast for the coming days, further containment of the fires looks challenging. When we last covered the California wildfires earlier this week the number of structures destroyed…

Global Parametrics, the parametric and index-based disaster risk transfer company, has partnered with global reinsurance firm Hannover Re to renew an innovative Yucatan, Mexico coral reef parametric insurance cover. The transaction renews the coverage for the Mexican Reef Protection Program, an initiative that leverages parametric risk transfer and reinsurance capacity, in a deal that if…

Issuance of new catastrophe bonds could exceed the record set in 2017 if it continues at the pace set in the first-half of the year, as capital markets risk transfer continues to gain acceptance with cedants and investor appetite continues to grow. Catastrophe bonds have been unaffected by the Covid-19 pandemic, in terms of losses,…