Catastrophe Risks

At the Vermont Captive Conference, a panel highlighted property risk management strategies in captives. They discussed the role of catastrophe modeling, structured solutions, and how captives can address complex risks such as high-value assets and natural disasters while offering more flexibility in risk retention and coverage. Read More

Aon's latest report shows record growth in the insurance-linked securities (ILS) sector, with $17.9 billion in catastrophe bonds issued. Cyber risk debuted in the market, and the total ILS market volume grew to $110 billion. Sidecar volumes also hit a new high of $10 billion, driven by strong investor demand. Read More

Insurance-linked securities (ILS) capacity has grown modestly in 2024, aligning with market demand. The property catastrophe bond market reached $45 billion, with record issuance in Q2 2024. Despite strong returns in 2023, risk-adjusted rates remained flat, with minor increases in lower layers. Capacity providers maintain discipline, anticipating 2025 renewals. Read More

Severe thunderstorms, particularly in the United States, led to $42 billion in insured losses during the first half of 2024, marking a significant rise in global natural catastrophe losses. Flooding in the United Arab Emirates, Germany, and Brazil further contributed to the above-average total of $60 billion in insured losses. Read More

Aon and Columbia University have announced findings from their research collaboration on climate impacts on hurricanes, set for publication in August. The study suggests underestimated hurricane risks and emphasizes the need for adaptable risk management strategies. Read More