Catastrophe Risks
Exploring Parametric Innovations in the Captive Market: Insights from the Bermuda Captive Conference
In a Bermuda Captive Conference presentation, Greg Fears of Pinnacle Actuarial highlighted parametric insurance's role in the captive market. By using predefined triggers, captives can provide faster payouts, address unique risks, and bridge protection gaps in traditional insurance, benefiting sectors with diverse needs, from agriculture to pandemic-related business interruption. Learn More
Temporary NFIP Extension Provides Short-Term Relief during Hurricane Season
With a temporary National Flood Insurance Program (NFIP) extension granted during hurricane season, AM Best highlights the need for private insurers to assume more flood risk for a sustainable flood insurance market, as private market growth has stagnated and NFIP debt continues to rise amid increasingly severe weather events. Learn More
Stable Insurance Market Despite Florida Hurricanes, Aon Reports
Aon's report indicates that insured losses from Florida Hurricanes Helene and Milton, estimated between $34 billion and $54 billion, won't destabilize the property insurance market. Strong capitalization in primary and reinsurance markets ensures stability through 2025, though businesses must focus on resilience amid climate-change-related risks. Read More
Cat Bond Issuance Grows as Investors Seek Returns and Climate-Risk Mitigation
Fitch Ratings projects continued record issuance of catastrophe bonds in 2024, as insurers look to manage risks and offer strong returns to insurance-lined securities investors. Despite increased costs, the market remains attractive due to high yields, diversification benefits, and favorable risk spreads in the reinsurance market. Read More
Resilient Growth: Swiss Re's 2024 Insights on the Insurance-Linked Securities Market
Swiss Re's "Insurance-Linked Securities Market Insights" for 2024 shows strong insurance-linked securities market performance with over $12.3 billion in primary issuances. Despite natural catastrophes, the market saw minimal volatility and high investor confidence, per the report. Cat bond indices posted solid returns, highlighting the sector's resilience and growth. Read More
Gallagher Re Reports $280 Billion in Global Natural Catastrophe Losses
The "Gallagher Re Natural Catastrophe and Climate Report: Q3 2024" details $280 billion in global economic losses from natural catastrophes. Major events included Hurricane Helene, seasonal floods in China, and Storm Boris in Europe. Insured losses reached $108 billion, with significant impacts in the United States and emerging climate trends worldwide. Read More
Navigating Nuclear Verdicts: General Strategies and Insights for Captive Insurers
Captives face growing challenges from nuclear verdicts but can mitigate risks by adapting coverage strategies, improving claims defense, leveraging data analytics, and coordinating with parent companies. Proactive management and early intervention are essential to reducing financial and reputational impacts from these escalating jury awards. Read More