July 31, 2013

N.Y. MTA buys insurance protection for future 'Sandy' storms

New York CVB photo by Joe Buglewicz

New York CVB photo by Joe Buglewicz
The Metropolitan Transportation Authority (MTA) has secured $200 million of insurance protection that will help pay for future repairs for damage to its infrastructure in the event of a storm featuring destructive storm surges similar to those experienced during Superstorm Sandy. The insurance protection has been funded through the offering of “catastrophe bonds” by MetroCat Re Ltd., a special purpose insurer.

This is the first time that the MTA has accessed the capital markets to manage its property damage risks, and it is the first catastrophe bond ever issued to protect solely against storm surge. The MTA’s premium cost is well below quotes that MTA received this spring for traditional property coverage.

“In the aftermath of Superstorm Sandy, the traditional avenues we use for insurance and reinsurance contracted dramatically, making it exceedingly difficult for the MTA to obtain insurance,” said MTA Chairman/CEO Thomas F. Prendergast. “But as a result of this savvy and novel reinsurance arrangement, we are now in a stronger position should our area, God forbid, face another large-scale storm-surge event within the next three years.”

The transaction provides protection in the unlikely event that the water level reaches designated heights in the New York City Metropolitan Region during any hurricane, tropical cyclone or tropical storm through August 5, 2016.



 


deli.cio.us digg it stumble upon newsvine
[ Request More Info about this product / service / company ]


E-NEWSLETTER

Receive the latest Metro E-Newsletters in your inbox!

Join the Metro E-Newsletters and receive the latest news in your e-mail inbox once a week. SIGN UP NOW!

View the latest eNews
Express Tuesday | Express Thursday | University Transit

White Papers

Mass Transit Capital Planning An overview of the world-class best practices for assessing, prioritizing, and funding capital projects to optimize resources and align with the organization’s most critical immediate and long-term goals.

The Benefits of Door-to-Door Service in ADA Complementary Paratransit Many U.S. transit agencies continue to struggle with the quality of ADA service, the costs, and the difficulties encountered in contracting the service, which is the method of choice for a significant majority of agencies. One of the most basic policy decisions an agency must make involves whether to provide door-to-door, or only curb-to-curb service.

Mass transit mobile Wi-Fi & the public sector case study How Santa Clara Valley Transportation Authority successfully implemented Wi-Fi on its light rail and bus lines

More white papers


STORE
METRO Magazine Fact Book - 2014

There are the Highlights:
  • Industry Analysis: Economic Impact of Public Transportation
  • Industry Data
    And Much More…..
  •  
    DIGITAL EDITION

    The full contents of Metro Magazine on your computer! The digital edition is an exact replica of the print magazine with enhanced search, multimedia and hyperlink features. View the current issue