Reinsurance News
Flood insurance and reinsurance news
News related to flood insurance and reinsurance, including: new products and market innovation; flood insurance market loss events; companies underwriting flood insurance or reinsurance; public flood insurance through the NFIP; and the expanding availability of private market flood coverage.
Parametric solutions can shrink flood insurance protection gap: Floodbase
8th June 2023
With floods on the rise due to climate change, re/insurance solutions covering this type of peril have become more important now than ever, Peter Lacovara, Head of Commercial at Floodbase, highlighted in a recent interview with Reinsurance News. With flood having one of the largest protection gaps compared to other perils, ... Read the full article
Flood Re launches ‘Be Flood Smart’ campaign in partnership with Environment Agency
22nd May 2023
Flood Re, the joint initiative between the UK government and the insurance industry, has launched the ‘Be Flood Smart’ campaign in partnership with the Environment Agency. Studies have shown homeowners face average costs of £32,000 to fix flood damage as flood risk in the UK grows. 1 in 6 people in ... Read the full article
Massive flooding in Italy to cost billions, highlighting large insurance protection gap: Aon
19th May 2023
Local authorities are foreseeing economic losses in the billions of Euros related to floods in Italy due to the massive disaster, while the insurance industry is expected to bear a smaller portion of the overall cost due to an existing protection gap for flood coverage, as stated by Aon. "Given the ... Read the full article
Demand for parametric re/insurance is on the rise: Floodbase’s Lacovara
18th May 2023
Demand for parametric insurance is on the rise as more people have started to recognise that these solutions can provide protection for things and events that could not be covered by indemnity insurance, said Peter Lacovara, Head of Commercial at Floodbase, in a recent interview with Reinsurance News. In the last ... Read the full article
PERILS raises industry loss estimate for Cyclone Gabrielle to NZ $1.925bn
17th May 2023
Zurich-based catastrophe insurance data provider PERILS AG has provided a second estimate for Cyclone Gabrielle which brought extreme rainfall and strong winds to the North Island of New Zealand during the period of 11 to 17 February 2023, pegging the total to NZ $1.925 billion. On March 30, it initially ... Read the full article
Bregal Sagemount & FTV Capital invest in Neptune Flood Incorporated
16th May 2023
Bregal Sagemount and FTV Capital, two leading growth-focused private equity firms, have announced a strategic growth investment in Neptune Flood Incorporated. Both Sagemount and FTV will acquire a substantial minority stake in the firm, with Neptune CEO and management maintaining majority ownership. Financial terms of the transaction were not disclosed. Launched in ... Read the full article
ICEYE & Global Parametrics enter data accord to drive disaster risk management
11th May 2023
ICEYE has entered into an agreement with Global Parametrics to provide flood data to support the development of innovative parametric risk transfer solutions. ICEYE states that as part of the agreement, its global Flood Insights data will be used by Global Parametrics to design, structure and execute parametric risk transfer structures. In ... Read the full article
Reinsurance recoveries for NZ floods & cyclone could hit $276m: Tower Limited
9th May 2023
Reinsurance recoveries for Tower Limited, a New Zealand based insurance company, from flooding in Auckland and Cyclone Gabrielle may now hit as much as $276m according to the carrier's recently updated loss estimates. The insurer had previously highlighted that it expected its excess-of-loss catastrophe reinsurance would be triggered by these events, ... Read the full article
Swiss Re to reinsure parametric flood product in Kenya
9th May 2023
Global reinsurer Swiss Re is to provide reinsurance for a new index-based flood insurance solution in Kenya, which is set to be launched by Britam in partnership with Oxfam, and which aims to protect small-scale farmers from the impact of catastrophic floods. The solution, developed by Nairobi-based insurer Britam, uses data ... Read the full article
Rational re/insurance pricing key to mitigating flood risk, says Fathom’s Dr Sampson
4th May 2023
“If the re/insurance market prices flood risk rationally, it will increase pressure for wider rational behaviour, which in the long term will encourage decisions that properly account for the underlying risks,” suggests Dr Chris Sampson, co-founder and CTO of flood and climate risk intelligence provider Fathom. Sampson’s comments stem from an ... Read the full article
PERILS raises industry loss estimate for SE Australia flooding to AUD 907m
27th April 2023
Zurich-based catastrophe insurance data provider PERILS AG has disclosed its third industry loss estimate for the October 2022 Southeast Australia floods, noting the event cost the insurance industry a total of AUD 907 million. PERILS explains that the updated figure is based on detailed loss data by postcode and line of ... Read the full article
South Africa’s New National partners with JBA for global flood data
27th April 2023
Specialist insurer New National Assurance has signed an annual agreement with flood risk modeller, JBA Risk Management (JBA), for the use of its flood data for South Africa. The data, which incorporates climate change intelligence, will be used by the insurer to underwrite property-risk for both personal and commercial lines. Additionally, ... Read the full article
ICA raises insured loss from 2022 Australia floods to $5.81bn
19th April 2023
The Insurance Council of Australia (ICA) has raised its estimate of insured losses from the devastating Eastern Australia floods that occurred over February and March in 2022 to AUD 5.81 billion, based on more than 240,000 claims lodged. This represents an increase of $160 million over the figure of $5.65 ... Read the full article
Understanding water risk essential for almost all businesses: AXA XL
11th April 2023
In a recent report outlining how firms can manage key water-related threats, researchers at AXA XL suggested that understanding water risks is essential for almost all businesses, regardless of the sector. Citing the international non-profit CDP, AXA XL states that the cost to businesses of inaction on water risks is 5x ... Read the full article
Closing flood protection gap requires new approaches: Zurich
27th March 2023
Closing the flood protection gap in vulnerable countries will require “massive investments” and new approaches from policymakers and re/insurers, a new report by the Zurich Flood Resilience Alliance has concluded. The report highlights the urgent need to mitigate the effects of climate change for those most at risk of devastating flooding, ... Read the full article