Today's forecast for Hurricane Irma's path over the Florida peninsula has taken a more favourable turn for the (re)insurance industry as models put it on a more westerly track.
ILS investors are expecting a full loss on the $150mn class A layer of a $360mn cat bond issued by the World Bank for the benefit of Mexico's Fonden catastrophe fund, sources said.
The $150mn Mexican earthquake layer of the MultiCat Mexico bond is exposed to a magnitude 8.1 earthquake that occurred off the southern coast of Mexico overnight
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) has said it will be making payouts of $15.6mn to Antigua & Barbuda, Anguilla and St Kitts and Nevis following Hurricane Irma.
Probable maximum loss (PML) figures for insurers' exposure to a one-in-100-year event may underestimate the likely insured cost of a direct hit on a populated area, according to Karen Clark, CEO of the eponymous modelling firm.
