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Direct-to-consumer insurtech company, Kin Insurance has hailed the substantial improvement in pricing for its latest catastrophe bond issuance, the $300 million Hestia Re Ltd. (Series 2025-1) transaction, the company’s largest cat bond yet.

Kin sponsored its debut $175 million Hestia Re Ltd. (Series 2022-1) catastrophe bond cover back in April 2022.

Kin returned to the catastrophe bond market in February, initially targeting $200 million or more in Florida named storm reinsurance protection, from this Hestia Re 2025-1 deal, the company’s third cat bond.

In our first update on the deal, we revealed that that target size for the issuance had increased by 50% to $300 million, as well as by more than 70% from the expiring Hestia Re 2022-1 cat bond, due to strong investor demand being seen across the cat bond market.

Then, in late February, we reported that Kin had managed to secure its upsized target of $300 million for this Hestia Re 2025-1 deal, while the final pricing of the two tranches of Series 2025-1 notes were at the low-end of the already reduced guidance range.

The transaction features two tranches of Series 2025-1 notes, a $200 million Class A tranche and a $100 million Class B tranche, which will provide Kin with a three hurricane season source of fully-collateralized Florida named storm reinsurance, on a indemnity trigger and per-occurrence basis, running from June 1st this year to three years after the issuance completes.

Angel Conlin, Chief Insurance Officer at Kin, commented: “The success of this transaction, particularly the substantial improvement in pricing terms, validates our disciplined approach to risk selection and portfolio management. This enhanced protection at more favorable terms directly benefits our policyholders by strengthening our claims-paying ability while reducing our overall cost structure.”

According to Kin, the company’s new catastrophe bond represents a pivotal component of a comprehensive 2025 reinsurance program, for Kin-managed reciprocal exchanges, which protects a rapidly growing policyholder base across multiple states.

Sean Harper, CEO of Kin, said: “Insurers and their customers have experienced higher reinsurance rates a few years in a row. We are happy to see reinsurance rates begin to decrease for our reciprocal exchanges, which will benefit our policyholders.

“In addition to improvement in the market, the dramatically improved terms reflect investors’ growing confidence in our technology-driven approach to homeowners insurance and our ability to effectively manage catastrophe exposure. This transaction strengthens the capital position of our reciprocal exchanges and supports our continued expansion while maintaining our commitment to providing affordable coverage in catastrophe-prone regions.”

Insurance and reinsurance broker Howden’s capital markets and insurance-linked securities (ILS) specialist unit, Howden Capital Markets & Advisory served as the exclusive structuring agent and bookrunner for the transaction.

Mitchell Rosenberg, Co-Head of Global ILS at Howden Capital Markets & Advisory, added: “The substantial upsizing and favorable pricing of this transaction highlight the ILS market’s strong appetite for supporting innovative and top performing insurers like the Kin reciprocals, that continue to demonstrate model outperformance, transparent communication, and a proven track record in underwriting and claims.

“We’re proud to have helped Kin Interinsurance Network achieve these exceptional terms, which represent a significant improvement over previous issuances.”

As a reminder, you can read all about the Hestia Re Ltd. (Series 2025-1) catastrophe bond from Kin and every other cat bond deal issued in our extensive Artemis Deal Directory.

Kin highlights “substantially lower pricing” of new Hestia Re 2025-1 cat bond was published by: www.Artemis.bm
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As the California Earthquake Authority (CEA) risk transfer needs have been adjusting and its reinsurance tower shrinking, catastrophe bonds now make up almost 32% of the total as of February 28th 2025.

The CEA’s risk transfer tower had sat at just over $9.15 billion of limit as recently as following the June 2024 reinsurance renewal season, but has been steadily shrinking ever since.

The CEA’s risk transfer tower, made up of traditional and collateralized reinsurance as well as cat bonds had totalled $7.99 billion as of Nov 1st 2024.

When we last reported on it, earlier this month based on January 31st information, the California Earthquake Authority’s (CEA) risk transfer tower provided total private market protection of roughly $7.85 billion, of which catastrophe bonds were approximately 31%.

Now, a further disclosure from the CEA shows another small reduction in its traditional or collateralized reinsurance cover , with the overall tower $125 million smaller as of February 28th 2025, at just over $7.72 billion.

Thanks to its recent sponsorship of the $400 million Ursa Re Ltd. (Series 2025-1) catastrophe bond, the CEA still benefits from $2.455 billion of multi-year reinsurance protection provided by cat bond funds and investors.

The traditional and collateralized reinsurance component of the tower remains much larger at almost $5.27 billion as of February 28th 2025.

But catastrophe bonds continue to demonstrate their vital importance for the CEA, now being almost 32% of the total tower as of that date.

Cat bonds were just 25% of the tower as recently as June 30th 2024, which then increased to 28% at November 1st, stayed flat around the 28% mark at January 31st 2025, then 31% after the inclusion of the recent $400 million new cat bond issuance, and now 32% after the latest slight shrinking of reinsurance.

It’s going to be interesting to see how the CEA’s risk transfer tower adjusts after its April 1st reinsurance renewal date.

The CEA has almost $1.2 billion of traditional or collateralized reinsurance limit maturing on March 31st and has been in the market for a renewal of some or all of that, we understand.

The reason for certain non-renewals in the reinsurance tower over recent months is the fact that the CEA’s probable maximum loss at the 1-in-350 year loss event level has been declining at a faster pace that its reinsurance contracts have been coming up for renewal, while it has also been building internal capital as well.

The CEA has $2.455 billion of outstanding catastrophe bond coverage still in-force at this time, continuing to occupy 3rd position in our cat bond sponsors leaderboard.

View details of every catastrophe bond sponsored by the CEA in the Artemis Deal Directory.

As we also reported earlier this year, the California Earthquake Authority (CEA) has been exploring the need for either a pre-funded subsequent or second-event funding tower (with risk transfer and reinsurance perhaps a part of it), or the infrastructure for one, that would support its functions after a significant earthquake loss that depletes its claims paying ability, with a focus on ensuring financial stability for the long-term.

Cat bonds move up to contribute 32% of CEA’s smaller still $7.72bn reinsurance tower was published by: www.Artemis.bm
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Insured losses from the Los Angeles wildfires, which are currently estimated between $35-$50 billion, could support property catastrophe pricing heading into the mid-year reinsurance renewals, according to Goldman Sachs, however, analysts still expect mid-year rate trends to remain broadly in line with the January 2025 renewals.

Analysts highlight that the big four reinsurers: Munich Re, Swiss Re, Hannover Re, and SCOR, have already absorbed between 24% and 42% of their full-year natural catastrophe budgets due to the first-quarter wildfire losses.

“It remains very early to fully assess the impact on the mid-year renewals, however, the scale of the losses could suggest some upward pressure, although we are still of the view that mid-year renewals will be broadly consistent with what we have seen in January,” Goldman Sachs said.

Despite the severity of the California wildfire losses, Goldman Sachs maintains that the property and casualty (P&C) reinsurance market is in a post-peak margin cycle, following years of rate increases. This was reflected in the January 2025 renewals, where risk-adjusted pricing declined by 0%-2%, across Goldman Sachs’ coverage.

Notably, SCOR’s pricing remained flat, benefiting from lower retrocession costs, while Hannover Re saw a 2.1% decline.

These trends, combined with strong reinsurer returns, increased capital availability, and rising frequency loss activity for primary insurers, contributed to the first overall rate decline in nearly a decade.

While the Los Angeles wildfire losses may help limit further rate declines, Goldman Sachs remains cautious on any significant upward pricing movement at the mid-year renewals.

Analysts suggest that despite the large industry losses, overall reinsurance pricing will likely remain broadly consistent with January trends.

However, this could change if further catastrophe events were to strain budgets and capital availability across the market in the coming months.

As the mid-year renewals approach, market participants will closely monitor how capital levels and loss experience evolve, particularly given the uncertainty surrounding wildfire-related claims and broader catastrophe activity in the months ahead.

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Allianz Commercial, part of global insurer Allianz, has announced the appointment of Lara Martiner as Global Head of Alternative Risk Transfer at Allianz Global Corporate & Specialty SE (AGCS), effective April 1st, 2025, succeeding Grant Maxwell, who is leaving the German insurer at the end of June.

Martiner will also maintain her current role as Chief Executive Officer (CEO) of AGCS subsidiary, Allianz Risk Transfer AG.

Martiner has been with Allianz Group for over 14 years, having joined the company in 2011 as Legal Counsel, Head of Compliance, and location head in Zurich.

Throughout her career, she has held several senior roles within AGCS and its Alternative Risk Transfer division, including joining the executive board of Allianz Risk Transfer AG in October 2021 and taking on the role of Chief Executive and General Counsel one year ago.

Alternative Risk Transfer is a strategic growth area for Allianz Commercial, with increasing demand from clients looking to complement their traditional risk transfer programs with non-traditional solutions.

Parametric risk transfer remains a key component of the Allianz ART offering. In the past the group had a significant role in fronting for insurance-linked securities (ILS) capital providers, although has since pulled-back from that area.

In 2024, the firm’s Alternative Risk Transfer unit underwrote over €2 billion in gross written premium including fronting premiums.

With growing demand for non-traditional risk transfer solutions, including structured insurance, captive fronting, and bespoke risk solutions such as parametrics and sustainable solutions, Alternative Risk Transfer has become a strategic growth area for the firm.

“Congratulations to Lara on her appointment to this key role in our business and I look forward to working with her,” commented Vanessa Maxwell, Chief Underwriting Officer at Allianz Commercial.

Adding: “Alternative Risk Transfer is an area of key growth for us, and I have every confidence that she will continue to build on our capabilities and expertise, for the benefit of our wider business in future. I would also like to thank Grant for his capable and effective leadership of this business unit over the last five years and his almost 17 years with Allianz Group.”

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Following a mixed pricing environment at the January 1st, 2025, reinsurance renewals, analysts at Moody’s anticipate property catastrophe reinsurance pricing to stabilise somewhat at the upcoming US mid-year renewals, driven by the impacts of Hurricanes Helene and Milton, and the more recent California wildfires.

In a new report, Moody’s noted that several key reinsurance brokers and European carriers have provided updates on their experience at the January 1st renewals, which is when typically between 40% and 60% of a global reinsurer’s portfolio is renewed, including much of the European business.

Among the big four European reinsurers, all except Munich Re, which saw a decline due to underwriting actions, reported premium growth at the renewals, as firms sought to deploy capital in a “still-attractive pricing environment,” albeit softer than a year earlier at the 1/1 2024 renewals.

Moody’s said: “Pricing across the portfolios of these European reinsurers was generally flat, ranging from a -2.1% decrease reported by Hannover Re to a 2.8% overall increase reported by Swiss Re. For its nonproportional business, SCOR reported the first pricing decease (-0.8%) since the January 2017 renewals.”

However, as reported by reinsurance broker Guy Carpenter, the US property catastrophe reinsurance segment witnessed an overall rate decline of 6.2% at the January renewals, which was the first decrease seen since the January 2017 renewal period.

Moody’s added: “Generally, pricing was largely stable in working layers – the lower levels of reinsurance used for more frequent and smaller claims.

“However, pricing was lower at the top end of reinsurance programs where there was plenty of capacity available for coverage of less frequent and larger claims, for which pricing remains attractive on a risk-adjusted basis.”

Shifting attention now to the mid-year reinsurance renewals, which particularly focuses on the US, the country has witnessed some heavy nat cat loss activity throughout the last several months.

Moody’s commented: “The upcoming midyear 2025 reinsurance renewals, which focus on the US, will be influenced by large US catastrophe loss events over the past year, particularly Hurricanes Helene and Milton and the Los Angeles wildfires, which are likely to provide support to reinsurance pricing for US exposures.”

Concluding: “Because many renewing US accounts have experienced losses from Hurricanes Helene and Milton and the recent wildfires in California, we think it is likely that US property catastrophe reinsurance pricing will stabilize, supported by the potential for significant price increases for accounts that have had sizeable losses over the past year.”

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Over the last few years, there has been a significant shift in sentiment among mainstream media and politicians, who cite the cost of reinsurance coverage as a key driver of the escalating cost of property insurance in the United States and nowhere has this been more apparent than in Florida.

The cost of reinsurance has been rising, as reinsurers and third-party capital providers, including ILS fund managers, seek to get paid adequately for the natural catastrophe exposure they are assuming, having been badly impacted by catastrophe and weather losses over repeated years.

Reinsurance has become an easy target for those looking to identify a driver of rising property insurance rates for consumers, especially given how fast and far the market has hardened over the last two years.

As an international financial market dealing in billions of dollars and with offshore centers of expertise, unfortunately reinsurance also fits a narrative for those who would prefer to shift the focus of blame for problems in the US property insurance market offshore, as well.

Which means it has become a contentious issue in political circles, especially in the US states that have been most affected by natural catastrophes and severe weather.

As ever, Florida is one of those states in focus and it seems that not a week goes by without mainstream press citing the cost of reinsurance as one of the issues keeping property insurance prices high for policyholders in the state.

Of course, pinning the blame for high property insurance costs on carriers’ expenditure on reinsurance protection overlooks all of the other drivers, many of which have been issues since long before this hard market came along.

Aside from the losses and the frequency claims that had been passed onto reinsurers, before the sector reset its attachments higher and reduced aggregate coverage, there have also been significant inflationary factors that have driven exposure values sky-high, as well as the excess and amplified cost of claims being driven by litigation and an industry that burgeoned with a focus on working to inflate the quantum of property claims.

None of this is unique to Florida either. It’s just a lot of this became more accentuated as it was professionalised there, while litigation and fraudulent claims have been something quite unique to behold in the Sunshine State.

Property insurance rates were bemoaned as problematic and too high in Florida well before 2017, at which time the reinsurance market was incredibly soft compared to the state of the market today.

The situation in Florida is also accentuated by the fact some of the domestic market insurance carriers have historically been relatively thinly capitalised, compared to nationwide players and so rising reinsurance costs have hurt them much more, while rising attachments have also proven problematic to their business models.

Which drove the state’s legislative to introduce more state-backed reinsurance support, which elevated the issue much higher and drove greater media awareness as well.

So, reinsurance as a topic, has been making its way up the political and media agenda and in the last year hit the state Governor’s budget, as Ron DeSantis set funds aside to pay for a study into reinsurance market cycles.

Earlier this year, Governor Ron DeSantis signed his budget for fiscal year 2024-2025, dubbed ‘Focus on Florida’s Future’.

There are a raft of insurance and risk mitigation measures within the budget, with some $237 million set aside for budget support of residential home mitigation programs and additional oversight of the property insurance market in Florida.

Within that, a small line item allocates $475,000 for contracting reinsurance industry experts to evaluate the impact of reinsurance cycles on property insurance rates.

There is no line item, that we can see, designed to pay for analysis of other factors driving property insurance rates in the state.

The property insurance market in Florida has been stabilising, with the effects of legislative reforms undertaken in recent years clearly one reason for this. While carriers capital positions have also improved, helped by a lower level of catastrophe and attritional losses last year.

This is also helping to improve conditions for buying reinsurance for carriers in the state, as seen at recent renewals.

But the fact remains, it is unfair to blame reinsurance markets for Florida’s high property insurance prices, or indeed for any other US state.

That has much more to do with the levels of exposure, inflation, values-at-risk, losses and all the aforementioned challenges with litigation, claims amplification and even outright fraud that has been seen after major losses struck the state.

We must not forget the fact Florida is ground-zero for exposure values to hurricane risk and while building codes and practices have improved, it remains true that any medium to major hurricane hitting the state can cause billions of dollars in losses for insurers and reinsurers.

At which point the reinsurance market always demonstrates its worth, as without it Florida’s insurance market would surely need to be fully-subsidised by the state government and its taxpayers.

Understanding the effect of reinsurance cycles on the rates property insurers charge in Florida is, of course, worth some effort.

Reinsurance rates go up. So too property insurance rates are likely to rise. But this has nothing to do with the true cost of doing business there, given the rapidly rising exposure and increasing values of property in the way of hurricanes, or other natural events.

The state might do better to analyse the effects of Florida specific idiosyncrasies, in the legal, adjusting, construction and repair marketplaces, as well as how those drove insurance rates higher over the last two decades.

While another worthwhile venture might be in exploring ways to buy reinsurance more efficiently, or how innovative risk transfer such as parametric triggers might be able to play a role and create different, perhaps better, economics for carriers in their interactions with reinsurers.

But understanding reinsurance market cycles and the influence they have on primary insurance rates may not lead to the kinds of learnings that can make much of a difference in the first place.

Supply and demand side factors, such as capital availability and risk appetite, are often driven by global factors, as well as local. Alongside which, there is a need for risk commensurate rates to be paid for both insurance and reinsurance. Subsidising that is not an industry concern, but the industry can provide solutions that might help add efficiency through pooling of risk and leverage of efficient sources of risk capital.

This market has itself been trying to understand reinsurance cycles for decades and in recent history many extremely well-qualified participants thought the reinsurance cycle was dead. That proved not to be the case, at least not in the way anyone thought.

The reinsurance cycle is alive and kicking and we’ve been trying to second-guess it for years.

We wish DeSantis and his team luck and hope they’ll share the findings from their chosen consultants.

I’m sure many reinsurers and ILS funds that deploy billions in capital to support Florida’s property insurance marketplace and the state’s inhabitants would welcome that too.

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Reask, the catastrophe modelling, climate analytics and data specialist, has announced that it has appointed Moody’s Joss Matthewman as its new Chief Revenue Officer, to help support the company’s next phase of growth.

Matthewman brings extensive experience in insurance, reinsurance and catastrophe modelling, as well as a deep understanding of how models are built, applied, and scaled across global re/insurance, parametric insurance, and insurance-linked securities (ILS) markets.

He joins the organisation from ratings agency Moody’s (previously RMS) where he spent four years as Senior Director of Climate Change Product Management & Strategy, responsible for driving go-to-market and product strategy across all climate change products.

Prior to joining Moody’s, Matthewman worked at specialist insurer and reinsurer Hiscox, where he held the role of Group Head of Catastrophe Exposure Management, overseeing the the groups catastrophe risk exposure across all exposed lines of business.

In addition, Matthewman started his career by working as a catastrophe model developer at RMS, where he held various roles leading model development across hurricane wind and storm surge risk.

Reask said that Matthewman’s unique experience in re/insurance and catastrophe modelling go-to-market strategy, coupled with the firm’s product market-fit made him the clear choice to spearhead the company’s next phase of customer-centric growth.

Addressing his appointment, Matthewman said: “With their demonstrated expertise in catastrophe risk and cutting-edge innovation, I am delighted to be joining Reask. I very much look forward to having this opportunity to help drive continued growth of the company.”

Jamie Rodney, CEO of Reask, commented: “Joss is a rare and exceptional talent having worked across the entire value-chain of building, buying and selling models. Coupled with his deep curiosity and ability to provide extreme weather data solutions that do not exist today, there is no one better positioned to understand the challenges our customers face. Joss’ expertise will be key in delivering value and maximising our product-market fit as we enter our next phase of growth.”

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Reask, the catastrophe modelling, climate analytics and data specialist, has announced that it has appointed Moody’s Joss Matthewman as its new Chief Revenue Officer, to help support the company’s next phase of growth.

Matthewman brings extensive experience in insurance, reinsurance and catastrophe modelling, as well as a deep understanding of how models are built, applied, and scaled across global re/insurance, parametric insurance, and insurance-linked securities (ILS) markets.

He joins the organisation from ratings agency Moody’s (previously RMS) where he spent four years as Senior Director of Climate Change Product Management & Strategy, responsible for driving go-to-market and product strategy across all climate change products.

Prior to joining Moody’s, Matthewman worked at specialist insurer and reinsurer Hiscox, where he held the role of Group Head of Catastrophe Exposure Management, overseeing the the groups catastrophe risk exposure across all exposed lines of business.

In addition, Matthewman started his career by working as a catastrophe model developer at RMS, where he held various roles leading model development across hurricane wind and storm surge risk.

Reask said that Matthewman’s unique experience in re/insurance and catastrophe modelling go-to-market strategy, coupled with the firm’s product market-fit made him the clear choice to spearhead the company’s next phase of customer-centric growth.

Addressing his appointment, Matthewman said: “With their demonstrated expertise in catastrophe risk and cutting-edge innovation, I am delighted to be joining Reask. I very much look forward to having this opportunity to help drive continued growth of the company.”

Jamie Rodney, CEO of Reask, commented: “Joss is a rare and exceptional talent having worked across the entire value-chain of building, buying and selling models. Coupled with his deep curiosity and ability to provide extreme weather data solutions that do not exist today, there is no one better positioned to understand the challenges our customers face. Joss’ expertise will be key in delivering value and maximising our product-market fit as we enter our next phase of growth.”

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Yokahu, an insurtech and Lloyd’s Coverholder, has announced the launch of a parametric risk exchange platform for the London insurance and reinsurance market, aiming to seamlessly connect brokers, carriers, and data providers to streamline parametric risk transfer transactions.

Yokahu believes that its launch of cat-risk.com will reduce friction in the market when it comes to trading in parametric insurance or reinsurance arrangements, while ensuring fast, transparent payouts when catastrophic events strike.

The company says that it has built its new parametric risk exchange with a goal to enhance the market, rather than disrupt it, transforming what can be a slow and high-friction process to allow for rapid quote and bind times, while offering real-time risk assessment, pricing and importantly seamless capacity allocation to parametric opportunities.

The cat-risk.com platform will enable multiple carriers to co-insure parametric risks that are placed on the platform, based upon the individual risk appetites of capital providers.

So it appears that capital will be able to express its risk appetite for deals, to win access to parametric opportunities through Yokahu’s new parametric risk exchange.

As a Lloyd’s Coverholder, Yokahu will administer each carrier’s portfolio separately and discreetly, allocating capacity to the deal presented using “BiPar principles in a manner that reflects the traditions of trading at Lloyd’s but in a digital context,” the company said.

Yokahu explained that, “This allows more risk carriers to enter the parametric climate resilience market with smaller initial lines and reduced portfolio volatility.”

Policy triggering will be automated through the digital parametric risk exchange, with any claims instantly presented for approval to carriers reducing claim payment times to as little as 48 hours.

The platform has been launched with support for extreme weather risks, including hurricanes, typhoons, and storms, with limits up to $5 million per transaction, but the goal is to include earthquake coverage and higher limits, as well as enhanced risk insights from data partners.

Yokahu said the platform launch already sees leading data providers such as Reask involved, while it is being supported by major capacity providers and top-tier brokers as well.

Tim McCosh, Founder & CEO of Yokahu, commented, “Parametric insurance has long been heralded as a solution for fast, reliable disaster payouts, but inefficiencies in placement have hindered adoption. With cat-risk.com, we are delivering on the promise of parametric insurance – removing barriers, improving accessibility, and ensuring resilience in the face of growing climate and disaster risks.”

Farid Tejani, Co-Founder of Yokahu, added, “This is about evolution, not revolution. cat-risk.com enhances the existing parametric insurance ecosystem, making transactions smoother, data integration stronger, and payouts faster. We believe this will help unlock the full potential of parametric insurance for businesses, governments, and communities worldwide.”

Yokahu CFO, Carsten Wolheimer, further stated, “cat-risk.com is an important step forward in combining financial markets expertise with innovative parametric risk transfer. By streamlining transactions and leveraging robust financial market principles, we are creating a more efficient, transparent, and scalable solution for disaster risk transfer, fully aligned with Yokahu’s vision for a digital insurance marketplace that delivers real impact.”

Digitally connecting parametric risk transfer opportunities from cedents more directly and efficiently to risk capital providers is a natural evolution for the market and one that has been gaining increasing attention, with other platforms already available that seek to address this.

Yokahu, with its Lloyd’s Coverholder focus, can channel parametric risk through its platform to Lloyd’s capital providers, which could help to make parametric opportunities more readily accessible, while also enabling cedents to get access to broader panels and more competitive capital, as well as offering faster payouts and digital monitoring of risk transfer arrangements.

Yokahu launches parametric risk exchange for London re/insurance market was published by: www.Artemis.bm
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Yokahu, an insurtech and Lloyd’s Coverholder, has announced the launch of a parametric risk exchange platform for the London insurance and reinsurance market, aiming to seamlessly connect brokers, carriers, and data providers to streamline parametric risk transfer transactions.

Yokahu believes that its launch of cat-risk.com will reduce friction in the market when it comes to trading in parametric insurance or reinsurance arrangements, while ensuring fast, transparent payouts when catastrophic events strike.

The company says that it has built its new parametric risk exchange with a goal to enhance the market, rather than disrupt it, transforming what can be a slow and high-friction process to allow for rapid quote and bind times, while offering real-time risk assessment, pricing and importantly seamless capacity allocation to parametric opportunities.

The cat-risk.com platform will enable multiple carriers to co-insure parametric risks that are placed on the platform, based upon the individual risk appetites of capital providers.

So it appears that capital will be able to express its risk appetite for deals, to win access to parametric opportunities through Yokahu’s new parametric risk exchange.

As a Lloyd’s Coverholder, Yokahu will administer each carrier’s portfolio separately and discreetly, allocating capacity to the deal presented using “BiPar principles in a manner that reflects the traditions of trading at Lloyd’s but in a digital context,” the company said.

Yokahu explained that, “This allows more risk carriers to enter the parametric climate resilience market with smaller initial lines and reduced portfolio volatility.”

Policy triggering will be automated through the digital parametric risk exchange, with any claims instantly presented for approval to carriers reducing claim payment times to as little as 48 hours.

The platform has been launched with support for extreme weather risks, including hurricanes, typhoons, and storms, with limits up to $5 million per transaction, but the goal is to include earthquake coverage and higher limits, as well as enhanced risk insights from data partners.

Yokahu said the platform launch already sees leading data providers such as Reask involved, while it is being supported by major capacity providers and top-tier brokers as well.

Tim McCosh, Founder & CEO of Yokahu, commented, “Parametric insurance has long been heralded as a solution for fast, reliable disaster payouts, but inefficiencies in placement have hindered adoption. With cat-risk.com, we are delivering on the promise of parametric insurance – removing barriers, improving accessibility, and ensuring resilience in the face of growing climate and disaster risks.”

Farid Tejani, Co-Founder of Yokahu, added, “This is about evolution, not revolution. cat-risk.com enhances the existing parametric insurance ecosystem, making transactions smoother, data integration stronger, and payouts faster. We believe this will help unlock the full potential of parametric insurance for businesses, governments, and communities worldwide.”

Yokahu CFO, Carsten Wolheimer, further stated, “cat-risk.com is an important step forward in combining financial markets expertise with innovative parametric risk transfer. By streamlining transactions and leveraging robust financial market principles, we are creating a more efficient, transparent, and scalable solution for disaster risk transfer, fully aligned with Yokahu’s vision for a digital insurance marketplace that delivers real impact.”

Digitally connecting parametric risk transfer opportunities from cedents more directly and efficiently to risk capital providers is a natural evolution for the market and one that has been gaining increasing attention, with other platforms already available that seek to address this.

Yokahu, with its Lloyd’s Coverholder focus, can channel parametric risk through its platform to Lloyd’s capital providers, which could help to make parametric opportunities more readily accessible, while also enabling cedents to get access to broader panels and more competitive capital, as well as offering faster payouts and digital monitoring of risk transfer arrangements.

Yokahu launches parametric risk exchange for London re/insurance market was published by: www.Artemis.bm
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