Life-threatening storm surge is already occurring along the coastline from Alabama to the Florida Panhandle, including Pensacola Bay and southern portions of Mobile Bay.
The ILS market is seeking to avoid further high levels of collateral lock-up should a string of events similar to those in 2017-2018 happen again, writes Lucy Jones.
The latest increase has pulled its cumulative returns since inception down to a loss of 52.9 percent for ordinary shares, as prior-year gains have been more than wiped out by 2017/18 disaster events.
The modelling company’s range for the European storm is significantly higher than the $680mn cost forecast by actuarial consultants Meyerthole Siems Kohlrus.
Julian Enoizi, who was instrumental in bringing the £75mn Baltic Re terrorism cat bond to market, said using ILS for an exotic risk was “a long journey”.
The total of Hurricane Michael claims filed with Floridian insurers through to 11 January has reached $5.02bn, the Florida Office of Insurance Regulation said.
Richard Slater joins from XL Catlin as underwriting director, while Adam Champion leaves MS Amlin to take the role of senior vice president, portfolio manager and operations.
Securis-backed Special Purpose Arrangement (SPA) 6129 made a loss of £31.4mn ($44.2mn) in 2017 following the year's major catastrophe losses, as its combined ratio spiked to 180.4 percent.
The Prudential Regulation Authority (PRA) has hired an insurance-linked securities specialist from interdealer broker Tullett Prebon to work in the fledgling UK sector, sister publication Trading Risk reported
The US Federal Emergency Management Agency plans to turn to the insurance-linked securities market to bolster its flood cover through a July placement.
