The Governing Board of the California Earthquake Authority (CEA) approved a revision to its guidelines for engaging in catastrophe bond risk transfer to the capital markets this week, while also noting a successful reinsurance renewal at April 1st, saying it secured favourable pricing and limit.The California Earthquake Authority (CEA) is a significant buyer of reinsurance … Read more
Over the last few years, there has been a significant shift in sentiment among mainstream media and politicians, who cite the cost of reinsurance coverage as a key driver of the escalating cost of property insurance in the United States and nowhere has this been more apparent than in Florida.The cost of reinsurance has been … Read more
Florida’s Citizens Property Insurance Corporation, the state’s insurer of last resort, is aiming to purchase $2.94 billion of new traditional reinsurance and catastrophe bonds for the 2025 hurricane season, which would take its total risk transfer to $4.54 billion this year.Florida Citizens still has $1.6 billion of catastrophe bonds outstanding to provide protection through the … Read more
Fitch Ratings, a provider of credit ratings, research, and risk analysis, expects to see a further expansion of alternative reinsurance capacity in 2025, supported by cyber catastrophe bond issuances, which will add to the reinsurance sector’s capital base and help absorb earnings volatility.Looking back at 2024, three cyber cat bonds were introduced to the insurance-linked … Read more
According to Eric Andersen, President of broking giant, Aon, the insurance-linked securities (ILS) market continues to be a very “boutique business within reinsurance” for the firm, in terms of the scale of the traditional reinsurance treaties seen across the industry on property cat, liability and specialty.Andersen noted that ILS is a growth area though and … Read more