Archive for August, 2016

Insurance-linked securities (ILS) and reinsurance linked investment funds saw a below-average return of 0.25% in June 2016, as some ILS funds that invest in private and collateralized reinsurance deals were hit by losses from European flooding and the Jubilee oil field FPSO loss.

Munich Re, currently the second largest reinsurance company in the world, said this morning that the attrition to reinsurance underwriting margins continues but at a slower pace, saying that global reinsurance pricing and terms are stabilising.

After a reduction of new issuance in the global catastrophe bond market in the first-half of 2016, and with just $1.38 billion of maturities to come before the end of the year, reinsurance firm Swiss Re feels conditions are favourable for outright growth through Q2.

U.S. commercial P&C rates declined by an average of 1% in July 2016, in line with the 1% reduction witnessed in June as insurers continue to push for an end to any further rate reductions, according to market commentary from MarketScout and Keefe, Bruyette & Woods (KBW).

Catastrophe risk modelling firm RMS has highlighted the growing catastrophe exposures faced by ports around the world. Analysis from the firm reveals that a combination of cargo type and the type of natural disaster risk are significant drivers of potential losses, and not just the size of container hubs.

RFIB Group Limited, the international and Lloyd’s specialist insurance and reinsurance broker, has made an important hire in the U.S., adding insurance-linked securities (ILS) and reinsurance capital markets specialist Glenn Jackson as Managing Director of RFIB Americas.

Having risen at the last forecast release at the start of July, the average forecast for activity in the 2016 Atlantic Tropical Storm and Hurricane Season has dropped after forecasters Tropical Storm Risk (TSR) reduced their prediction for the season.

Here are the ten most popular news articles, week ending 7th August 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 evolution of the ILS market continues to drive the ebb and flow of catastrophe bond and collateralised reinsurance issuance. And with investors now able to access the market and deploy capital via a broader range of solutions, it’s an exciting time for the industry, according to Bill Dubinsky.

For corporations large and small the purchase of their traditional insurance protection typically includes a large deductible, which can be very expensive to reduce. Underlining an opportunity for the capital markets and parametric triggers to provide companies with a more efficient means of reducing risk.