Catastrophe Risks
WTW and Swiss Re Launch Parametric Policy Triggered by Forecasts
WTW and Swiss Re have introduced a parametric insurance policy that triggers coverage based on red weather warnings in the United Kingdom and Ireland. This forecast-based model offers pre-agreed payouts for operational losses, even if the severe weather does not occur, addressing gaps left by traditional damage-based insurance. Learn More
Munich Re Cites Growing Risks, Rising Demand in Reinsurance Market
Munich Re reports rising reinsurance demand driven by climate change, geopolitical instability, and cyber threats. Insured catastrophe losses reached $80 billion in early 2025. The company emphasizes risk-adequate pricing, capital strength, and innovation as it prepares for the January 2026 renewals amid evolving global risk and insurance landscapes. Learn More
Cat Bond Surge Expands ILS Capacity, Softens Reinsurance Pricing
A new AM Best report shows record catastrophe bond issuance in 2025 is expanding insurance-linked securities (ILS) capacity and softening reinsurance pricing. June renewals fell around 10 percent overall, with varied rate shifts by risk layer. Increased demand in Florida and broader investor access are reshaping the reinsurance market landscape. Read More
Insurers Differ in Catastrophe Model Use, Aon Survey Finds
Aon's 2025 survey shows insurers vary widely in catastrophe model adoption, with regional differences in climate risk priorities. Many rely on brokers for analytics and accumulation management. Key concerns include data quality, model transparency, and nonmodeled losses, underscoring the need for robust, science-based risk management strategies. Read More
Swiss Re Reports Active First Half for ILS Market in 2025
Swiss Re's "ILS Market Insights: July 2025" details a robust first half for the insurance-linked securities (ILS) market, with over USD 17 billion in catastrophe bond issuance. High investor demand, strong yields, and low correlation to traditional markets continue to support growth, offering insights into evolving risk transfer and reinsurance capital strategies. Read More
Willis: Natural Catastrophes Expected to Drive Heavy Losses in 2025
Willis projects over $100 billion in insured catastrophe losses for 2025, driven by extreme events like the $40 billion Los Angeles wildfire. The report highlights escalating climate risks, severe storms, and flood events across the United States, urging insurers to adapt strategies using climate forecasts and updated catastrophe risk models. Read More
Wildfires and Storms in US Lead Global Disaster Losses in Early 2025
Munich Re's H1 2025 update reports $131 billion in global disaster losses, with $80 billion insured. US wildfires and storms led the damage, marking the second-highest insured loss for any first half-year on record. The report highlights increased frequency and severity of climate-driven catastrophes across multiple regions. Read More