{"id":917,"date":"2025-10-24T10:30:44","date_gmt":"2025-10-24T10:30:44","guid":{"rendered":"http:\/\/fictionuncovered.com\/?p=917"},"modified":"2025-10-30T15:39:42","modified_gmt":"2025-10-30T15:39:42","slug":"cat-bonds-may-be-indias-next-shield-says-prateek-singhal-howden-india","status":"publish","type":"post","link":"http:\/\/fictionuncovered.com\/index.php\/2025\/10\/24\/cat-bonds-may-be-indias-next-shield-says-prateek-singhal-howden-india\/","title":{"rendered":"Cat bonds may be India\u2019s \u2018next shield,\u2019 says Prateek Singhal, Howden India"},"content":{"rendered":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

Prateek Singhal, Executive President & Head \u2013 Reinsurance at Howden India, believes that catastrophe bonds may be India\u2019s \u201cnext shield\u201d, emphasising the country\u2019s need for instruments like cat bonds to protect its growing economy from climate risk.
\n<\/span>
\n\"\"Readers may recall that there have been recent calls for India to develop its own regulatory framework for insurance-linked securities (ILS), including catastrophe bonds.<\/a><\/p>\n

This has become highly important as climate risk continues to intensify, and the global ILS market seeks geographic diversification.<\/p>\n

In a recent interview with Artemis, Singhal underscored this need, while also discussing whether ILS is an area that Howden India is interested in participating.<\/p>\n

\u201cCatastrophe bonds may be India\u2019s next shield. We believe India has a compelling need for instruments like cat bonds to shield its rapidly growing economy from massive climate risk, particularly because ILS can provide immediate, rules-based liquidity following a disaster.<\/p>\n

\u201cThe regulatory environment is supportive of this innovation, with policy discussions positioning cat bonds as an \u201cessential tool\u201d for modern risk finance,\u201d Singhal said.<\/p>\n

The executive continued: \u201cHowden has enormous experience in structuring insurance-linked securities, and we are continuously engaging with the partners on this.<\/p>\n

\u201cThe effort mandates to establish the required data standards for cat bonds simultaneously addresses the data deficiencies that currently limit the scalability of parametric insurance. By engaging in the foundational phase while contributing expertise to the Cat Modeling Center.\u201d<\/p>\n

When asked where he expects to see the biggest advances in creating new risk pools and narrowing India\u2019s protection gap, Singhal said: \u201cThe most significant expected advances to create new risk pools and narrow India\u2019s protection gap lie in scaling innovative risk transfer solutions that utilize advanced data, primarily parametric insurance,\u201d Singhal said.<\/p>\n

\u201cParametric insurance, which offers immediate, objective, rules-based payouts triggered by verifiable indices (like wind speed or rainfall), has already been tested successfully in localized instances, such as covering income loss during heat waves.<\/p>\n

\u201cFurthermore, Nagaland launched a multi-year, government-backed parametric scheme in 2024.\u201d<\/p>\n

Singhal concluded: \u201cDespite the IRDAI permitting such products under the \u2018use-and-file\u2019 regime, scalability remains limited by institutional barriers, including low awareness among insurers and state governments and the lack of a unified policy framework that formally recognizes these instruments.<\/p>\n

\u201cA global broker, like Howden, uniquely suited to facilitate the necessary data coordination, advise on basis risk minimization strategies, and connect these complexes, layered local risk pools with the global capacity specializing in structured and parametric placements.<\/p>\n

\u201cHowden in India has a dedicated Climate Risk (Parametric) practice which focuses on this and we are leading this space.\u201d<\/p>\n

Read all our interviews with ILS market and reinsurance sector professionals here<\/a><\/strong>.<\/p>\n

Cat bonds may be India\u2019s \u2018next shield,\u2019 says Prateek Singhal, Howden India<\/a> was published by: www.Artemis.bm<\/a>
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. Prateek Singhal, Executive President & Head \u2013 Reinsurance at Howden India, believes that catastrophe bonds may be India\u2019s \u201cnext shield\u201d, emphasising the country\u2019s need for instruments like cat bonds to protect its growing economy from climate risk. Readers […]<\/p>\n","protected":false},"author":1,"featured_media":919,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"_links":{"self":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/917"}],"collection":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/comments?post=917"}],"version-history":[{"count":2,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/917\/revisions"}],"predecessor-version":[{"id":920,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/917\/revisions\/920"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/media\/919"}],"wp:attachment":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/media?parent=917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/categories?post=917"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/tags?post=917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}