The insurance and reinsurance industry is already facing an $11 billion bill for U.S. severe convective storm losses suffered during the first-half of 2016, as tornadoes, hail and straight-line winds impacted the country, with Texas particularly hard hit.
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So, overnight the United Kingdom population has voted in favour of leaving the European Union, in what is to many a surprising result that presents a number of potential issues for the insurance-linked securities (ILS) market to consider.
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Kiskadee Investment Managers, the Hiscox owned insurance-linked securities (ILS) fund and reinsurance linked investment strategies unit, has reached its target of $1 billion of ILS assets under management ahead of target, passing the milestone in June.
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The insurance and reinsurance industry loss estimate from the UK flooding that hit the country in December 2015 and early January 2016 is now £1.135 billion ($1.56bn), after the estimate for storms Eva – Frank fell by 7%, according to PERILS AG.
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International risk modelling firm RMS has announced the release of version 16.0 of its catastrophe modelling platform, which includes enhancements to its European windstorm and global terrorism models, as well as a new marine cargo & specie model, and new data for U.S. flood risks.
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Reinsurance market at an “inflection point” – Newman, Willis Re

June 23, 2016

Insurance and reinsurance market headwinds continue to hinder the profitability of market players and after a decade of “wonderful results,” the industry is more than likely at an inflection point, according to Andrew Newman, President of Willis Re.

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Kumamoto quake insured loss to reach $4bn, claims paid rises again

June 23, 2016

The figure reported for insurance and reinsurance industry losses due to claims paid for damage to dwellings from the earthquakes that struck the Kumamoto region of Kyushu, Japan in April has risen again and the total re/insurance industry loss is now expected to by over $4 billion.

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Blue Capital Global Reinsurance Fund to pursue share buy-backs

June 23, 2016

The board of the Blue Capital Global Reinsurance Fund, the London and Bermuda stock exchange listed reinsurance linked investment fund, has engaged Jefferies to effect share buy-backs that are accretive to net asset value on behalf of the company.

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Florida Citizens rates to rise 6.8% in 2017

June 23, 2016

The Board of Florida’s Citizens Property Insurance Corporation has approved a statewide 6.8% rate rise for personal lines policies, as it tries to head off a trend of rising non-weather water losses and assignment of benefit (AOB) abuse.

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ILS investors willing to discuss collateral release for longer-tail risks

June 22, 2016

With the ILS market poised for further expansion, potentially into longer tail business lines, end investors of fully collateralized products are open to discussions regarding the duration and inherent complexities of collateral release, according to industry experts.

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World Bank Pacific Resilience Program to include parametric insurance

June 22, 2016

The World Bank has launched the Pacific Resilience Program (PREP), a group of projects aiming to strengthen Pacific Island countries’ resilience to natural disasters and climate change, including through the use of parametric insurance coverage.

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Reinsurers can prosper, even while pricing is lousy: S&P panelists

June 22, 2016

A lack of catastrophe losses significant enough to meaningfully drive any upturn in reinsurance rates, coupled with high levels of reserve releases enables reinsurers to perform better than the pricing environment suggests, according to a panel of industry leaders and experts.

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Warming Atlantic means higher hurricane forecast for 2016: Weather Company

June 22, 2016

A warming of north Atlantic ocean sea surface temperatures in the past month suggests a heightened chance of an active U.S. hurricane season in 2016, causing The Weather Company to increase its forecast numbers by one.

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Blue Capital cites renewal stability, reserves for catastrophe events

June 21, 2016

The combination of technical pricing discipline and a continued trend of increasing demand for reinsurance capacity, helped moderate price declines and stabilise the market at renewals, according to insurance and reinsurance linked asset manager Blue Capital.

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Rise of private ILS creates valuation complexities: Aaron Koch

June 21, 2016

Increasingly, growth in the ILS sector has come from private transactions that closely resemble traditional reinsurance business, such as collateralised reinsurance, but these contracts and structures can be more difficult to value.

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