Catastrophe Risks

Swiss Re estimates $107 billion in 2025 insured natural catastrophe losses, marking the sixth straight year over $100 billion. US wildfires and severe convective storms drove the majority of losses. Hurricane Melissa was the costliest storm, while early warning systems limited damage from a major Russian earthquake and tsunami. Read More

KBRA's report analyzes the uncertain future of the Federal Emergency Management Agency (FEMA) disaster recovery role and federal funding support. The research highlights potential shifts in cost-sharing, reforms under consideration, and the agency's critical coordination with the insurance industry. Any major change to FEMA's mandate could increase financial exposure for states, insurers, and policyholders. Read More

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