Recent catastrophe risk trends
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Hurricanes - PowerPoint PPT Presentation

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Hurricanes, Earthquakes, Wind, Rain, Catastrophe Risk Trends in reinsurance, insurance and finance.

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PowerPoint Slideshow about 'Hurricanes' - Actuary

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Presentation Transcript
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Recent Catastrophe Risk Trends

Presentation by

Claude Penland, Associate of the Casualty Actuarial Society

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Trends We’ll Cover

  • Government

  • Investment

  • Insurance Linked Securities Issuance

  • Regulation

  • Partnerships

  • New and Updated Models

  • Wrap Up

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Governments looking at Catastrophe Risk

  • Brazil creates Cat Fund

  • India may be considering catastrophe bonds

  • Ethiopia installing more weather stations

  • China

  • Crop insurance in China

  • Public Sector Catastrophe Risk Management

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Governments, continued

  • NY cat pool thoughts

  • CA tsunami risk

  • CA gas line risk

  • Mozambique weather risk mgmt

  • Asia underinsured for cat risk

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Catastrophe Risk as an Investment Vehicle

  • Cayman Islands leading issuer

  • Atropos has a new European ILS Fund

  • Catco Investment Mgmt formed

  • Horton Point ILS Fund

  • Secquaero Advisors, ILS inv mgr, enters Australia

  • Cat Finance emerging discipline

  • Hurricane Land Risk Options

  • Growing in Middle East

  • May grow in Canada

  • Growing Worldwide

  • Mere thunderstorms now considered in cat bonds

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What should be considered when issuing ILS?

  • Identify risk concentrations

  • Quantify the loss

  • Design structure

  • Engage a placement agent or investment banker

  • Engage a risk modeling firm

  • Decide on loss denomination

  • Choose investment vehicle location

  • Review

  • Execute

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New Cat Risk Underwriters

  • Liberty Syndicates

  • Indian Weather Risk Management market expected to rapidly grow

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Catastrophe Risk considered in Solvency II regulations

  • Solv II expects insurers to be prepared for a $50 Billion cat

  • Aon Benfield says II doesn’t acknowledge gains in measurement

  • Mega Broker says Solvency II could actually be catastrophic for the European insurance industry

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New Cat Partnerships

  • Institute of Cat Risk Mgmt, Nanyang Tech in Singapore and Aon Benfield have a research partnership

  • Global Earthquake Model and OpenGEO partnership

  • Data sharing considered

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New or Updated Models

  • Latin American Flood

  • Asian Risk Model

  • Asian Typhoon Model

  • European Cyclone

  • European Wind Risk Model

  • Earthquake hot spots

  • Largest US earthquake simulator planned

  • UK sea level risk

  • US pandemic risk

  • Philippines

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Additional Catastrophe Risk Background

  • An introduction to Volcanoes and Earthquakes

  • Academic Weather Risk papers

  • Cat Modeling tech

  • Amateur hurricane tracking

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Final Thoughts

  • US Government could hurt the ILS market with calls for increased regulation and documentation

  • Should you hire an in-house meteorologist?

  • covers daily catastrophe risk news and trends

  • Thank you!