Catastrophe Risks

Moody's Ratings has published a new insurance-linked securities modeling framework, completing its updated approach to rating catastrophe bonds. The paper details how Moody's uses catastrophe model data, structural terms, and seasonal factors to assess expected loss and weighted average life, offering clearer guidance for issuers and investors. Read More

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. Read More

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. Read More

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'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