|[August 01, 2014]
A.M.BestTV: Inside the World's Largest Catastrophe Bond
OLDWICK, N.J. --(Business Wire)--
This episode of A.M.BestTV examines how Florida's Citizens
Property Insurance Corp. (Citizens) launched a $1.5 billion catastrophe
reinsurance bond, the largest in the industry. Meg Green interviews
Jennifer Montero, chief financial officer of Citizens and examines how
the unusual coverage works. Additionally, Best's Review's Angelo
Lewis interviews A.M. Best's Managing Senior Financial Analyst of
Insurance Linked-Securities, Asha Attoh-Okine, on catastrophe bond
activity for the first half of 2014 and how the deluge of private
capital is transforming the reinsurance industry.
Citizens is behind the world's largest catastrophe reinsurance bond and
is Florida's insurer of last resort. The company now taps the capital
market for one-half of its reinsurance coverage. "The 2014 cat bond
represents 45% of our total risk transfer this year. If Citizens adds in
the 2013 bond, which does not expire until 2015, that makes about 50%
between the capital market and traditional reinsurance," said Montero.
Click here to view this episode. http://www.ambest.com/v.asp?v=catbonds814
Recent episodes of A.M.BestTV include:
Payouts From State Guaranty Funds Reach $28 Billion: Headline
insolvencies such as Fremont Indemnity Company, Reliance Insurance
Company and Lumbermens Mutual Casualty Company are the tip of a
600-deep roster of failed U.S. insurers over the last 40 years,
insolvency experts report. An insolvency can trigger payouts to
policyholders from U.S. state guaranty funds, though payout caps vary
among states: http://www.ambest.com/v.asp?v=guarantyfunds714.
Foes of Digital Highway Billboards Call for Insurers' Help: The
use of digital billboards has become more prevalent, and as a result,
the Scenic America Association seeks to curtail their use, saying that
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Studies on the signs' impact reach conflicting conclusions: http://www.ambest.com/v.asp?v=scenic714.
Insurance Legislation Picks Up: Business Travel Concerns: Kathy
Donovan, senior compliance counsel of Wolters Kluwer Financial
Services reports that the pace of U.S. state insurance-related
legislation is running ahead of 2013. In addition, James Scott,
accident product head at American International Group, Inc.'s
Benefit Solutions discusses developments in business travel insurance: http://www.ambest.com/v.asp?v=news72514.
What's Ahead for U.S. Terrorism Risk Coverage: Bernie Heinze of
American Association of Managing General Agents (AAMGA), Brady Kelley
of National Association of Professional Surplus Lines Offices, Ltd.
(NAPSLO) and Frank Nutter of the Reinsurance Association of American,
along with other insurance industry executives, outline the
differences in the House and Senate terrorism coverage bills and
assess chances for timely resolution: http://www.ambest.com/v.asp?v=tria714.
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View A.M.BestTV episodes at www.ambest.tv.
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