Aurora, Anthem join together for new insurance venture
Aurora Healthcare and Anthem Blue Cross and Blue Shield in Wisconsin are joining together to start a new insurance company. The plan is based on the assumption that Aurora can offer lower costs than competitors by people using its own network of hospitals and physicians.
Wisconsin Collaborative Insurance Co. has a $10 million capitalization for start-up costs and will begin coverage in 45 counties in the state from 2017. The firm’s new plans will replace those sold under the Blue Priority banner.
UN calls for long-term climate stability
The world faces even greater catastrophic weather incidents unless leaders vow to go further to cut greenhouse gas emissions. The head of the UN Office for Disaster Risk Reduction is today (Apr. 21) calling for signatories of the Paris Agreement to go beyond existing commitments.
“It is clear that weather and climate are implicated in 90% of major disaster events attributed to natural hazards. Droughts, floods, storms and heatwaves have the potential to undermine many developing states’ efforts to eradicate poverty. Climate change is adding to pre-existing levels of risk fuelled by exposure and socio-economic vulnerability,” Robert Glasser said.
He called for the more than 160 countries that have signed the Paris Agreement to “scale up the level of ambition” to cut emissions or face the “real danger of being overtaken by the rapid pace of global warming.”
Catastrophe bond issuance reaches new quarterly high
The issuance of catastrophe bonds reached $2.22 billion in the first quarter of 2016 according to an Aon study. Focusing on the insurance-linked securities sector, the study found that there were 10 transactions that pushed the figure to a record high for the first quarter; and up 30 per cent from the same period in 2015.
Bonds covering US named storm and earthquake dominated the market in Q1, as did, to a lesser extent, Japan typhoon. Canada earthquake and US medical benefits ratio coverage were also part of the Q1 2016 issuance.
The report reveals that secondary markets activity increased during the quarter, with trade volume rising more than 25 per cent compared to Q4 2015.