Archive for June, 2016

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.