News review: May 29 2018

The World Bank’s Pandemic Emergency Financing Facility (PEF) has made its first cash disbursement, providing a $12m grant to assist in the response to the recent Ebola virus outbreak in the Democratic Republic of Congo, as the number of cases and deaths reported by the World Health Organisation (WHO) rises. The outbreak of Ebola in Congo could become an eligible event under the terms of the coverage. The death toll from the latest outbreak has so far reached 27.

Trans-Tasman insurer Youi is seeking to renew its ILS market cover via a deal with the Eclipse Re cat bond lite issuance platform. The company, which writes home and motor policies in Australia and New Zealand, has sourced indemnity collateralised reinsurance cover via boutique broker Rewire for the past few years. Rewire collaborated with ILS service firm Horseshoe Group to launch the Eclipse Re platform in 2017.
Trading Risk

One of the panels at this year's Meeting of Reinsurance Officials (MORO) explored the potential for mutual insurers to use catastrophe bonds for their risk transfer needs. Geoff Lubert, managing director, Willis Re Canada, said that while it was a department from what mutuals have done traditionally, there could be a benefit in "using alternative and innovative capital to deliver a better cost-effective solution to the end policyholder."

TigerRisk Capital Markets & Advisory has formed a new Bermuda facility named Panthera Re to provide its insurance and reinsurance company clients with access to capital markets. Panthera Re will will allow clients to access third-party capital investors, making a variety of risks and contract types accessible and tradeable to institutional investors.
Insurance Journal

Nephila Climate and Allianz Global Corporate & Specialty SE's alternative risk transfer unit have closed a first set of solar Proxy Revenue Swaps for two solar projects in Australia, the Susan River Solar and Childers Solar facilities. The two five-year transactions will protect the new solar projects' revenues from the financial risks associated with uncertain production volume, timing of energy generation and future energy prices.

Aon has created the Aon Weather & Climate Risk Innovation network to evaluate the potential impact of climate risk and weather on clients' operations, and develop comprehensive risk financing strategies to improve resilience. Focused on quantifying risk, lowering the cost of capital for climate mitigation solutions, and closing the capital efficiency gap in infrastructure and chronic weather risks, the network builds on the risks identified by the G20’s Financial Stability Board recommendations on climate risk disclosure.
Aon Weather and Climate Risk Innovation

Forecasters at the NOAA predict a 35 percent chance of an above-normal season and a 40 percent chance of a near-normal season. They believe there is a 70-percent likelihood of 10 to 16 named storms, of which 5 to 9 could become hurricanes, including 1 to 4 major hurricanes (category 3, 4 or 5). Secretary of commerce Wilbur Ross, said: “The devastating hurricane season of 2017 demonstrated the necessity for prompt and accurate hurricane forecasts.”

Posted: Monday, May 28th, 2018