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Despite catastrophe bond and insurance-linked securities (ILS) issuance breaking records in 2017, with H1 issuance reaching a staggering $9.761 billion, growth remains “one-dimensional” and entering new lines of business is a top industry priority, according to Tom Johansmeyer, Assistant Vice President (AVP), PCS Strategy and Development.

PCS has launched its 2017 H1 Catastrophe Bond Report, which, like the Artemis Q2 2017 Catastrophe Bond & ILS Market Report, reveals that a record-breaking first and second-quarter has seen issuance reach its highest ever total for a single year, and the outstanding market reach a new high, of $29.3 billion.

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The UK government has published its finalised regulations that it says “introduce a competitive regulatory and tax regime” for insurance-linked securities (ILS) business and will help to ensure that the country remains “at the forefront of the global reinsurance market.”

UK flagThe awaited rules which had been delayed by the calling of a snap election by Prime Minister Theresa May are designed to help the UK gain a share of what it sees as a rapidly growing ILS market.

The Risk Transformation Regulations 2017, which you can find the final version of and a response to the associated consultation period over on the UK government website, describe how to set up special purpose vehicles for insurance-linked securities (ILS) issuance, a legal framework for ILS, and the associated tax treatment of such instruments.

The UK ILS regulations also “provide for a tailored and proportionate approach to authorisation and supervision,” the government said today.

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Analysis by catastrophe risk modeller RMS undertaken for the UK’s Department for International Development (DFID), shows that the establishment of insurance schemes to protect against natural disasters in low and low-middle income countries can provide average annual recoveries equivalent to 11% of asset losses.

Mind the Gap sign (Source: Autoprotect)RMS has completed analysis to determine how feasible insurance schemes could lower the financial impact of disaster losses on low and low-middle income countries over the next decade.

The catastrophe risk modeller reports that the average annual asset loss from natural catastrophes in low to low-middle income countries is equal to $29.1 billion, of which 3%, or $900 million is covered by insurance. A further $2.2 billion, or roughly 8% of the total is currently covered by humanitarian aid expenditure.

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One of the bills calling for the use of catastrophe bonds, collateralized reinsurance and other private market risk transfer tools to lower the risk held by the U.S. National Flood Insurance Program (NFIP) will now be heard before a Senate committee.

National Flood Insurance Program logoSo far a number of House committee bills have featured calls for the de-risking of the NFIP through the issuance of flood catastrophe bonds, or whatever private market risk transfer and reinsurance is most affordable and practical at the time.

This bill, the National Flood Insurance Program Reauthorization Act of 2017, aims to reauthorise and also reform the NFIP, which is set to expire at the end of September this year.

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Generally, insurance-linked investment fund managers have moved up a ranking of alternative asset managers over the last year, as their assets under management increased propelling them upwards. But the potential for ongoing growth is clear, as ILS only makes up 0.6% of the surveyed asset base.

Pension fund alternative assetsThe latest survey on alternative assets from Willis Towers Watson, the Global Alternatives Survey 2017, shows that the largest insurance and reinsurance-linked investment manager Nephila Capital has moved up the rankings, reaching the dizzying heights of number 191 in the list of all alternative asset managers included in the survey.

While that may seem low, Nephila’s $10.2 billion of ILS assets under management is a far cry from the size of the world’s alternative investment managers with the top 100 all having more than $20 billion under management.

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Russian presidential adviser also emphasized that mechanisms for implementing the agreement are required.

MOSCOW, May 15. /TASS/. Russia will not isolate itself from the decisions of the Paris climate agreement and may join it in 2019, Russian Presidential Adviser Alexander Bedritsky told a TASS news conference.

“In my view, it will be ratified,” he said when asked whether Russia could ratify the agreement in 2019.

“I am confident, because this agreement poses no threat to our country. On the contrary, it opens up new opportunities, so we cannot be isolated in this regard,” Bedritsky said, adding that Russia is interested in implementing the document.

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ОРИГИНАЛ ПУБЛИКАЦИИ ЗДЕСЬ

Погодные аномалии, которые происходят нынешним летом, в будущем могут повторяться чаще, считает советник президента РФ по вопросам изменения климата Александр Бедрицкий.

Советник президента РФ по вопросам изменения климата Александр Бедрицкий, выступая на форуме МЧС, рассказал, чего ждать от погоды в дальнейшем.

Александр Бедрицкий, советник президента РФ по вопросам изменения климата: «Мы наблюдаем аномальные явления, когда погода неустойчивая. 2017 год — это пример таких ситуаций, которые могут повторятся все чаще».

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