Best of Artemis, week ending 2nd December 2018

Here are the ten most popular news articles, week ending 2nd December 2018, 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 or get our email alerts for every article we publish.

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Ten most viewed articles on Artemis.bm, week ending 2nd December 2018:

1. Capital availability & losses to drive reinsurance rates at 1/1 renewals
   Reinsurance, retrocession and insurance-linked securities (ILS) market sources expect rates to remain stable or even harden at the upcoming January 1st renewal season, as the loss experience and creep from 2017 catastrophes and the growing impacts from 2018 events look set to slow capital expansion across the sector.

2. One sidecar pulled on lack of investor appetite, others questioned on terms
   One collateralised reinsurance sidecar transaction that had been lined up for the January 2019 renewals has been pulled due to a lack of appetite from investors, while at the same time other sidecar arrangements are now being questioned for changes being proposed to their terms, Artemis understands.

3. Some ILS funds struggle to even renew core portfolios, let alone grow
   As we continue to delve into the market forces set to drive the upcoming January 2019 reinsurance renewals, it’s becoming clear that there are a handful of ILS funds in the market that are set to struggle to renew their existing portfolios, let alone grow or expand, as so much of their capital remains trapped.

4. Markets fear an Irma-like loss creep for hurricane Michael
   ILS and some reinsurance markets are beginning to show signs of fearing and in some cases expecting an Irma-like loss creep to occur with more recent hurricane Michael, leading some to even suggest that the industry insured loss could near $12 billion.

5. ILS NYC 2019 speaker update: World Bank and Red Cross to join
   We’re delighted to announce further additions to the agenda for our next conference, as the World Bank and the International Federation of the Red Cross join the speaking roster of our February 1st 2019 insurance-linked securities (ILS) conference in New York, Artemis ILS NYC 2019.

6. Non-traditional capital “cracked the moat” of Lloyd’s: Carnegie-Brown
   Non-traditional capital, managed by insurance-linked securities (ILS) funds or by more traditional underwriters, has “cracked the moat” of the Lloyd’s insurance and reinsurance market and is unlikely to leave, but it’s still not clear the market has developed its strategy on how best to take advantage of it.

7. Property catastrophe rates to rise at 1/1 & beyond: Everest Re management
   Management of Bermudian insurance and reinsurance group Everest Re told analysts from Goldman Sachs that they expect property catastrophe rates to rise at the key January 2019 renewal season and at Japanese and Florida renewals later in the year as well.

8. Wildfire industry loss could be as much as $15 billion: Moody’s
   The insurance and reinsurance industry loss from the recent California wildfires could be as much as $15 billion, which would still be a manageable impact although reduce fourth-quarter earnings, according to Moody’s.

9. RenRe & its Upsilon ILS vehicle potentially exposed to wildfire liability
   RenaissanceRe could be on the hook for an enlarged share of losses from the current California wildfire outbreaks given the firm had completed two large wildfire excess casualty deals in the second and third quarters of this year, with its Upsilon vehicle taking some of the risk in the latter transaction.

10. PEF cat bond threat rises as risk of Congo Ebola spread now “very high”
    The number of deaths confirmed by the World Health Organisation (WHO) from the latest Ebola outbreak in the Democratic Republic of Congo has risen again and the risk of the outbreak spreading to a neighbouring country is said to be very high, all of which heightens the risk for the World Bank’s pandemic catastrophe bond.

This is not every article published on Artemis during the last week, just the most popular, some of which were published over a week ago. There were 27 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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