Archive for June, 2016

The UK insurance and reinsurance market is awash with uncertainty, as the ramifications of a UK vote to leave the European Union are digested and London seeks to understand what a vote for Brexit will mean for its future prospects.

Primary insurer Federated National Holding Company (FNHC) has announced the completion of its 2016-2017 catastrophe reinsurance program, securing multi-year protection structured to incorporate a cascading feature, and the termination of its 30% quota share arrangement.

Investment management group Aberdeen Asset Management has opened two new multi-asset class strategy funds, both of which have mandates that allow investment into insurance-linked securities (ILS) such as catastrophe bonds.

Divergent mortality rate improvements through socio-economic groups creates difficulties with the establishment of a market-based approach to longevity risk transfer, and could limit available reinsurance capacity for the risk, according to the 2016 OECD Business and Finance Outlook.

International catastrophe modelling firm AIR Worldwide has released an earthquake risk model for India, which it hopes will provide a comprehensive tool that enables insurance, reinsurance, and ILS players to attain a better view of the exposure in the region.

As the world digests the ramifications of the UK’s Brexit vote to leave the European Union, the equity analysts are assessing the potential impact to the insurance and reinsurance sector, particularly in the UK and Europe.

The imbalance between supply and demand in the overcapitalised reinsurance marketplace has helped drive innovation in space, which has ultimately benefitted buyers of reinsurance protection, according to Steve Johnston, director of corporate reinsurance at The Co-operators.

Here are the ten most popular news articles, week ending 26th June 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.

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.

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.