The prospects for parametric catastrophe bonds in Africa

In this article, Kirill Savrassov, Dr. Urs Ramseier, and Dr Timothy Nielander co-author a discussion on the prospects of Cat bonds in Africa in the light of the increase in catastrophe losses, high cost of re-insurance, and a growing desire for alternative solutions that can close the persistent protection gap and deliver faster claim settlements.

Catastrophe bonds are a dominant product among Insurance-Linked Securities (ILS). Over recent years, their use has grown tremendously around the world. The discussion considers the underlying social and economic challenges occasioned by natural disasters, the need to de-risk, the constraints and opportunities for parametric catastrophe bonds, and the role and education of key stakeholders.