Best of Artemis, week ending 19th November 2017

Here are the ten most popular news articles, week ending 19th November 2017, 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.

Ten most viewed articles on Artemis.bm, week ending 19th November 2017:

1. Reinsurers to be disappointed with 1/1 renewal prices: Analysts
   Global reinsurers might find themselves somewhat disappointed by the level of price increases available at the upcoming January 1st 2018 renewals, with industry experts warning that rates might not react to recent losses in the way many in the industry are hoping for.

2. Cat bond spreads won’t widen significantly, but issuance to rise: Fermat
   Catastrophe bond spreads are not expected to widen significantly following the impacts of recent losses, according to cat bond and ILS fund manager Fermat Capital Management LLC, who only expect spreads will widen less than 10%. However the manager does expect an uptick in issuance anyway.

3. Only a “trickle of alternative capital” expected: Hiscox CEO, Masojada
   The market should not get too excited over the prospects of new capital flowing in following the heavy third-quarter losses, according to Hiscox CEO Bronek Masojada who says that rather than a “wall of capital” flooding in, we should only expect to see a “trickle of alternative capital.”

4. Catastrophe bond market continues to trade, as loss clarity emerges
   The catastrophe bond market has continued to trade through the recent losses, with activity in the secondary market relatively brisk in October 2017 and signs beginning to emerge that pricing uncertainty is gradually coming off, which combined with new issuance should help to stimulate more liquidity over the coming months.

5. Recent catastrophe losses could reverse terms creep: Rob Procter, Securis
   Whatever the impact recent catastrophe events have on reinsurance pricing at the upcoming renewals, and beyond, hopefully, the loosening of terms and conditions (T&C) witnessed in recent years can be reversed, resulting in a pure property market, says Rob Procter, Chief Executive Officer (CEO) of Securis Investment Partners.

6. Wait and see on the influence of ILS at 1/1: SCOR CEO, Kessler
   Dennis Kessler, the CEO of French reinsurance company SCOR, said that it’s currently not possible to know how much influence insurance-linked investors and ILS capacity will have at the key January 1st 2018 renewal season, saying that the market will just have to wait and see.

7. Four levers of reinsurance success (according to Doucette, Everest Re)
   For large traditional reinsurance firms, like Everest Re, there are four main responses to the challenging and softened marketplace, or perhaps what could be called levers for reinsurance success. Pulling the right levers could prepare companies for a new reinsurance world order, pulling the wrong one could see them doomed to failure.

8. Alternative capital to take up to $25 billion of losses: A.M. Best
   Rating agency A.M. Best believes that alternative capital will take as much as $20 billion to $25 billion of the recent catastrophe loss bill, with the majority falling to the collateralized retrocession and reinsurance market, noting that this capacity has played a vital role in helping reinsurers mitigate their net losses.

9. FEMA begins 2018 NFIP flood reinsurance renewal process
   The U.S. Federal Emergency Management Agency (FEMA) has started the procurement process for a 2018 flood reinsurance program renewal for the National Flood Insurance Program (NFIP), as it seeks to transition gradually towards a multi-year approach to use of reinsurance coverage.

10. InsuResilience commitments made at COP23 climate meeting
    New commitments have been made to the InsuResilience initiative, that seeks to provide direct or indirect insurance coverage to an extra 400 million of the world’s most vulnerable people by 2020, with the German government committing US $125 million to help expand the initiatives remit.

This is by no means every article published on Artemis during the last week, just the most popular, some of which were published over a week ago. There were 28 new articles published in the last week. To ensure you always stay up to date with Artemis and never miss a story subscribe to our weekly email newsletter which is delivered every Wednesday.

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