Insurance-linked securities: Embracing catastrophic risks
ORIGINAL PUBLICATION HERE
Insurance-linked securities (ILS) are an asset class based upon insurance events. They provide an element of diversity to portfolios. Put simply, a market collapse is unlikely to be correlated to a natural disaster.
New to ILS, cat bonds and insurance linked investments?
ORIGINAL PUBLICATION BY ARTEMIS HERE
As the asset class covering insurance linked securities and reinsurance linked investments grows, new readers may be looking for simple explanations of some of the key topics Artemis covers.
MarketView – Reinsurance companies dealing with ART, catastrophe bonds and weather risk management
“Investing in Hurricanes” by Adam Alvares
ORIGINAL PUBLICATION HERE
A very good fundamentals explanation from an online resource for catastrophe bond and insurance linked investments.
Reinsurance is not complicated but it is full of jargon. This 50 page booklet explains the key ideas that are necessary to make an informed investment in insurance linked funds. Introduced by the former partner responsible for the Goldman Sachs catastrophe bond business, the guide systematically explains the funds and their underlying assets.
Catastrophe Bonds – A to Z
A reader of this publication, the president of an insurance agency, recently wrote to say he kept hearing about catastrophe bonds but had little knowledge of what they were. He was curious if these instruments would replace traditional reinsurance and was particularly concerned about a scenario that would result in the catastrophe bond market’s collapse, resulting in widespread financial problems for primary insurers and economic calamity…..
Introduction to Cat Bonds by Entropics Asset Management
In recent years, product innovation and data analytics have expanded the scope of commercial insurance solutions to offer coverage for a wider range of threats, exposures and perils. With its transparent and fast claims payment and ability to offer a payout without actual physical damage to an asset, parametric or index-based solutions are often brought to the table of discussion when covering hard to insure risks.
From conversations with brokers and clients we’ve found that while there’s significant interest, there’s still some confusion around the concept of “parametric insurance” – what it is and how it works. Therefore, in this first article of the series we aim to shed some light on the concept….
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, we wanted to set the facts straight about the top 10 myths that we often come across when presenting parametric insurance solutions to clients….