ORIGINAL PUBLICATION HERE   Summary   Of the $232bn. of economic losses from natural disasters in 2019, only $71bn. was insured. 35% level of catastrophe risk coverage in advanced countries downsizes to only 6% in emerging economies. Out of existing disaster risk finance arrangements, the Sovereign Parametric Catastrophe Bonds seem to be the most viable […]

ORIGINAL PUBLICATION HERE Fifty years ago, Swiss Re published the first issue of its flagship report sigma. The publication has since become a must-read source of information on natural catastrophe risk for the insurance industry. The initial idea behind sigma was borne in the wake of the 1965 Hurricane Betsy, which caused extensive flooding across […]

ORIGINAL PUBLICATION HERE There’s vast potential for the re/insurance sector to help firms, governments and countries de-risk their balance sheets, says Andy Marcell, CEO of Aon’s Reinsurance Solutions business. According to Aon’s Impact Forecasting team, there were an estimated 156 natural disaster events globally during the first half of 2018. Not one of these events […]

ORIGINAL PUBLICATION HERE In our last article “What is parametric insurance?” we established the basics of what a parametric insurance solution is – its key attributes, how it works and what makes it different from a traditional insurance solution. However, we often hear a number of misconceptions about parametric or index based insurance solutions. In this article, […]

New regions, lines of business crucial to cat bond evolution: Johansmeyer, PCS

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ORIGINAL PUBLICATION HERE Albeit down year-on-year, catastrophe bond issuance in the first-half of 2018 remained impressive driven by a record-breaking Q1 and solid Q2. But while activity is still robust, the continued evolution of the sector will require new regions and lines of business in order to attract more sponsors. This is according to Tom […]

ORIGINAL PUBLICATION HERE The International Monetary Fund (IMF) has introduced a new cyber risk model and loss estimation system to assess the potential impact of cyber-attacks on the world’s financial institutions. By leveraging techniques from actuarial science and operational risk measurement the framework estimates aggregate losses from cyber-attacks and examines factors such as attack-frequency, countries […]