In order for the insurance-linked securities (ILS) market to continue to grow at the pace it’s been accustomed to, it will need to expand and diversify into new peril regions via innovation, according to industry leaders.
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Adverse economic conditions and reinsurance market turmoil has challenged industry participants throughout 2015 and into 2016, with hedge fund reinsurers being no exception, but it’s still too early to call this approach a failure, according to A.M. Best.
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Phoenix Life Holdings Limited, a subsidiary of life insurance and reinsurance consolidator Phoenix Group Holdings Limited, has agreed to acquire the Abbey Life business from Deutsche Bank, a deal that will provide the troubled bank with £935m ($1.215 billion) in cash.
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ILS investment fund returns hit 0.86% in August 2016

by Artemis on September 28, 2016

Insurance-linked securities (ILS), pure catastrophe bond and reinsurance linked investment funds reported their highest single monthly return of the year in August 2016, with the sector recording an impressive and above average 0.86% for the month.
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The California Earthquake Association (CEA), the non-profit provider of over 76% of residential earthquake insurance policies in California, has reported a significant increase in policy uptake in 2016, which the CEO told Artemis will mean more risk transfer will likely be required.
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Alternative capital “an innovative force within insurance” – Aon

September 27, 2016

While alternative capital has tested the marketplace, fundamentally changing the risk transfer business and been said to have disrupted the risk-to-capital value-chain in recent times, Aon says it’s important to remember that it’s provided an innovative force within insurance.

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No sign increasingly disciplined pool of alt capital will shrink: Peel Hunt

September 27, 2016

Despite a slowdown in the growth of alternative reinsurance capital in more recent times there’s no sign of the pool shrinking, and with a wealth of capacity waiting to enter post-event it’s unlikely a large event will turn the market, according to a recent note from Peel Hunt.

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E&S market to come under pressure, as reinsurers hunt returns: Fitch

September 27, 2016

The U.S. excess and surplus (E&S) lines insurance market may come under increasing pressure as reinsurance firms and others with the ability to underwrite E&S risks target the sector to offset lower pricing in other areas of reinsurance, according to Fitch Ratings.

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Sompo Japan trials blockchain for catastrophe & weather derivatives

September 27, 2016

Japanese and global property & casualty insurance group Sompo Japan Nipponkoa Holdings Inc., is the latest to embrace use of blockchain technology for risk transfer as it trials the technology for catastrophe and weather linked derivative transactions.

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Why ILS managers are staying firm on rates: Michael Stahel, LGT

September 26, 2016

Michael Stahel, Partner and Portfolio Manager at LGT ILS Partners describes how tearing down the wall between the reinsurance and capital markets has fundamentally altered the reinsurance cycle.

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Catastrophic norms of the future are in tail risks of today: Mark Carney

September 26, 2016

The insurance and reinsurance industry has organised itself to address existential issues related to climate change risk and the industry has shown “genius” by recognising that catastrophes and weather disasters could become increasingly severe in the future, according to Mark Carney.

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New cyber model aims to expand reinsurance & ILS participation

September 26, 2016

A new cyber exposure model has been launched, called Cyber Foresight, designed to assist with pricing and the assessment of cyber risks, the tool could help reinsurance and insurance-linked securities (ILS) capacity have a more influential impact on the growing threat of cyber attacks.

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Reserves suggest reinsurance cycle is at an inflection point: JLT Re

September 26, 2016

It’s likely that the insurance and reinsurance industry will find itself in “danger of releasing reserves” despite the suggestion that accident year redundancies are running low, suggesting the cycle has reached an inflection point, according to reinsurance broker JLT Re.

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Rising losses from flooding in Forbes, New South Wales, Australia: ICA

September 26, 2016

Insurance industry losses are rising from severe flooding experienced in the area around Forbes in the Central West of New South Wales, Australia, with the Insurance Council of Australia forecasting “tens of millions of dollars” of insured losses.

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Best of Artemis, week ending 25th September 2016

September 26, 2016

Here are the ten most popular news articles, week ending 25th September 2016, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates.

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