Rising rates could help reinsurers better assess climate risk


The search for yield has long driven the catastrophe bond market, which acts as a safety net for the global insurance industry. But as economic conditions change and climate concerns increase, assuming storm risk may become too difficult for some investors.

Industry loss estimates for Hurricane Ian are still changing, and either way, the actual loss tally won’t be settled for some time as litigation and claims adjustments unfold. But at the predicted level of tens of billions of dollars, the reinsurance that sits behind the primary insurers is about to kick in, as is “alternative capital” insurance like so-called cat bonds.


Wj

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button