Catastrophe Risks

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. Read More

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. Read More

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

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

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