RMS and the FIFA World Cup: Insuring Against Terrorism
As we reflect back on this year’s World Cup, which wrapped up without interruption after Germany’s victory on Sunday, it is clear that FIFA’s financial position is much stronger now than in 2006, due...
View ArticleFighting Emerging Pandemics With Catastrophe Bonds
By Dr. Gordon Woo, catastrophe risk expert When a fire breaks out in a city, there needs to be a prompt firefighting response to contain the fire and prevent it from spreading. The outbreak of a major...
View ArticleRisk, Models, and Innovations: It’s All Interconnected
A few themes came through loud and clear during this morning’s keynote sessions at Exceedance 2015. RMS’ commitment to modeling innovation was unmistakable. As RMS co-founder and CEO Hemant Shah...
View ArticleCat Bond Pricing: Calculating the True Rewards
Commentary in the specialist insurance press has generally deemed pricing of catastrophe bonds in 2015 to have bottomed out. While true in average terms, baseline pricing figures mask risk-return...
View ArticleClearing the Path for Catastrophe Bond Issuance
Cat bond efficiency has come a long way in the last decade. The premature grey hair and portly reflection that peers back at me in the mirror serves as a reminder of a time when even the simplest deals...
View ArticleThe Hurricane Hunter and the Cat Bond
The second Mexico multi-cat securitization was launched at the end of 2012 to provide reinsurance for the Fund for Natural Disasters (FONDEN) – established by the Mexican federal government as a...
View ArticleUnpacking Basis Risk
When catastrophe strikes, it is not unusual for the insurance payout to differ from the policyholder’s expectation. The possibility of such a discrepancy is referred to as “basis risk”. The term,...
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