Insurance Day

LISTEN NOW: The lates episode of the Insurance Day Podcast is now available on Spotify, Apple Podcasts and Amazon Music Last month the UK government closed its long-awaited consultation on the creation of a captives regime. A number of organisations have used the consultation as an opportunity to call for tailored legislation, including broker Marsh McLennan, which said the UK needed streamlined incorporation and approval procedures, bespoke regulation and capital and reporting requirements that were “fair, proportionate and reflective of the low risk nature of captives”. Another organisation in favour was Airmic (Association for Insurance & Risk), which represents the interests of corporate insurance buyers. To understand more about what a UK captives regime might look like, Insurance Day speaks with Airmc’s chief executive julia graham. https://lnkd.in/emP6gVSi Apple Podcast: https://lnkd.in/exz5GG78 Spotify: https://lnkd.in/ezY4M_me Amazon Music: https://lnkd.in/e2r5zYMN

FREE TO READ: The ILS market is poised for strong growth after an ‘exceptional’ 2024. https://lnkd.in/etViny4n Although still the smaller portion of overall reinsurance capacity, the ILS sector marked another year of strong growth in 2024. Guy Carpenter and AM Best calculated third-party capital totalled $107bn in 2024, up 7% year-on-year. Swiss Re reported a 10.5% increase in catastrophe bond volumes in 2024 to nearly $47.8bn. Bill Dubinsky, chief executive of Gallagher Securities, says 2024 “went even better than expected”, adding: “We saw a combination of new sponsors, coupled with long absent and now returning sponsors, as well as long-time anchor sponsors all accessing capacity to balance out and optimise their reinsurance programmes.” Insurance Day speaks to Gallagher Re, Fitch Ratings, Hannover Re, Aon and Swiss Re

“Re/insurers need to provide more capacity for covering clean energy technology risk so we can achieve our climate goals more quickly,” Ariel Green’s Managing Director Jan Napiorkowski says in his recent interview with Insurance Day. In the article he discusses how Ariel Green, a division of Ariel Re, collaborates with both insurance providers and financiers to help free up capital for clean energy technologies through their first-ever Lloyd's TPI Consortium. The Consortium was set up in 2023 to help insurance capacity markets that wanted to contribute within clean energy but did not have in-house capabilities.   Click here to read more about how Ariel Green helps insurers secure financing for clean energy and the TPI Consortium: https://lnkd.in/eVvfmpY5.   #arielre #arielgreen #cleanenergy #financingcleanenergyprojects #innovation #passion #ambition

Despite regulatory reforms designed to encourage ILS issuances in Hong Kong, Singapore and elsewhere, Bermuda will remain the primary domicile for ILS business. https://lnkd.in/etViny4n As for any other property catastrophe business, predictions for the ILS market depend on what Mother Nature does this year. However, industry experts are largely optimistic the alternative capital markets will keep growing in 2025 and will keep offering strong returns for investors. Although still the smaller portion of overall reinsurance capacity, the ILS sector marked another year of strong growth in 2024. Guy Carpenter and AM Best calculated third-party capital totalled $107bn in 2024, up 7% year-on-year. Swiss Re reported a 10.5% increase in catastrophe bond volumes in 2024 to nearly $47.8bn.

Heightened litigation risk is apparent in many regions, as highlighted in our Global Forecast 2025 report. In most parts of the world this is associated with existing difficulties caused by the backlog in the courts and litigation costs. Justice regimes will, therefore, need to evolve to provide new and more efficient solutions to disputes, leveraging technological advancement and reflecting evolving societal expectations. Writing in Insurance Day, Partner Ben Appleton and Corporate Affairs Lawyer Fiona Hamilton-Wood outline how embedding alternative dispute resolution (ADR) into resolving disputes aims to not only alleviate court backlogs, but can also create a fairer, more collaborative approach to justice outside of the traditional court route. Read the full article: https://lnkd.in/e3GVJwtr

Pre-arranged finance, such as insurance products, can help countries better plan their response compared with more traditional funding models, says Daniel Clarke, executive director for the Centre for Disaster Protection. https://lnkd.in/dYhBn2qR The public often associate disaster relief with fundraising campaigns to help communities recover from crises. On an intergovernmental scale, there is the similar expectation higher-income countries and humanitarian organisations will come together to raise funds and combine resources when a disaster strikes. This assumption is beginning to change as a number of factors – not least the impacts of climate change – have led lower-income countries to claim more control over their crisis management. A big part of this is the development of pre-arranged crisis finance: monetary relief arranged in advance of a potential event.

ESG considerations are reshaping business practices across the globe 🌍 In an article for Insurance Day, Chair of GILC, Gillian Davidson, explores the challenges this presents for the D&O insurance market, stressing that insurers and businesses alike must adapt quickly to keep pace with this dynamically changing environment 👇 https://lnkd.in/eY9sPTRA

💰🌱 Banks & Climate Finance: Scaling Up for Net Zero   Commercial banks are key players in climate finance, yet they currently account for less than 20% of total green funding. With net-zero targets driving policy and investment decisions, financial institutions are under increasing pressure to expand their role.   Key challenges remain. Private finance is concentrated in advanced economies and primarily supports energy, transport, and infrastructure projects, while sectors such as agriculture, forestry, and water management receive significantly less investment due to lower profitability.   Executive Director Michael Wilkins (Centre for Climate Finance & Investment, Imperial College Business School) recently spoke to Ben Margulies, stating that public-private partnerships could help bridge this gap by making these sectors more investable. He also highlights the role of parametric insurance in mitigating risk and unlocking capital for climate projects such as agricultural smallholders by providing "credit mitigation to the banks, hence releasing capital."   With institutions like ING, Barclays, and Commerzbank increasing their commitments to sustainable finance, the financial sector is moving in the right direction. However, with an estimated $7.4 trillion per year needed to achieve climate goals, the question remains: Can banks scale their efforts to meet the challenge? Read the article on Insurance Day 💼 https://lnkd.in/eqda5Yfn #ClimateFinance #SustainableInvesting #NetZero #BlendedFinance Imperial College London

Re/insurers should place the climate finance lens over every line of business they underwrite, according to Aon’s global head of Climate Risk Advisory. https://lnkd.in/efse7m8Y In an interview with Insurance Day, Liz Henderson says the theme of climate finance appears in almost every conversation with Aon clients, not just during events such as the UN climate talks or New York Climate Week. “It’s about how we leverage the financial system and gear it towards solutions that are going to capture the opportunity that the climate transition creates. And what this really comes down to is the basics of insurance,” Henderson says.

Banks have plenty of room for growth as climate financers https://lnkd.in/eqda5Yfn Public-private partnerships could encourage private capital to enter spheres of activity it avoids at present – this approach has been used for social infrastructure like schools and hospitals and could be applied to climate finance as well. Commercial financial institutions provide about $245bn in climate finance each year, according to the Climate Policy Initiative, but net-zero targets may encourage larger outlays.