Catastrophe Risks
World Bank Catastrophe Bond Pays Jamaica $150 Million After Hurricane
Jamaica will receive a $150 million payout after Hurricane Melissa triggered parametric conditions set in its World Bank-issued catastrophe bond. The bond, part of Jamaica's disaster risk strategy, enables rapid financial relief. Additional World Bank Group support will aid reconstruction and resilience efforts following the storm's impact. Learn More
IAIS Examines Financial Stability Risks from Natural Catastrophe Protection Gaps
The International Association of Insurance Supervisors (IAIS) special edition of the "Global Insurance Market Report" analyzes natural catastrophe insurance protection gaps and their financial stability implications. It finds rising uninsured losses globally and notes that low coverage levels increase vulnerability, particularly in developing markets. The report emphasizes data enhancement, supervisory collaboration, and risk-mitigation efforts to narrow protection gaps. Learn More
Insurers Confront Evolving Weather Risk Paradigm, KBRA Report Finds
Kroll Bond Rating Agency's (KBRA's) report, "Beyond the Coastline: Insurers Confront Evolving Weather Risk Paradigm," analyzes how insurers are managing shifting weather exposures, tighter reinsurance terms, and increased losses from wildfires and storms. The study highlights enhanced catastrophe modeling, Florida market reforms, and expanded use of parametric and alternative capital solutions. Read More
Aon Reports $114 billion in Global Insured Losses as 2025 Disaster Activity Slows
Aon's Global Catastrophe Recap—Q3 2025 found $114 billion in global insured losses and $203 billion in economic losses. Despite below-average disaster activity, US wildfires and storms dominated results. The protection gap fell to a record-low 44 percent, highlighting increased insurance coverage across key markets. Read More
WTW and Swiss Re Launch Parametric Policy Triggered by Forecasts
WTW and Swiss Re have introduced a parametric insurance policy that triggers coverage based on red weather warnings in the United Kingdom and Ireland. This forecast-based model offers pre-agreed payouts for operational losses, even if the severe weather does not occur, addressing gaps left by traditional damage-based insurance. Read More
Munich Re Cites Growing Risks, Rising Demand in Reinsurance Market
Munich Re reports rising reinsurance demand driven by climate change, geopolitical instability, and cyber threats. Insured catastrophe losses reached $80 billion in early 2025. The company emphasizes risk-adequate pricing, capital strength, and innovation as it prepares for the January 2026 renewals amid evolving global risk and insurance landscapes. Read More
Cat Bond Surge Expands ILS Capacity, Softens Reinsurance Pricing
A new AM Best report shows record catastrophe bond issuance in 2025 is expanding insurance-linked securities (ILS) capacity and softening reinsurance pricing. June renewals fell around 10 percent overall, with varied rate shifts by risk layer. Increased demand in Florida and broader investor access are reshaping the reinsurance market landscape. Read More