Archive for September, 2016

Michael Stahel, Partner and Portfolio Manager at LGT ILS Partners describes how tearing down the wall between the reinsurance and capital markets has fundamentally altered the reinsurance cycle.

The insurance and reinsurance industry has organised itself to address existential issues related to climate change risk and the industry has shown “genius” by recognising that catastrophes and weather disasters could become increasingly severe in the future, according to Mark Carney.

A new cyber exposure model has been launched, called Cyber Foresight, designed to assist with pricing and the assessment of cyber risks, the tool could help reinsurance and insurance-linked securities (ILS) capacity have a more influential impact on the growing threat of cyber attacks.

It’s likely that the insurance and reinsurance industry will find itself in “danger of releasing reserves” despite the suggestion that accident year redundancies are running low, suggesting the cycle has reached an inflection point, according to reinsurance broker JLT Re.

Insurance industry losses are rising from severe flooding experienced in the area around Forbes in the Central West of New South Wales, Australia, with the Insurance Council of Australia forecasting “tens of millions of dollars” of insured losses.

Here are the ten most popular news articles, week ending 25th September 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.

Offsetting a recent decline in catastrophe bond issuance and maintaining ILS market development, collateralised reinsurance has recorded solid growth, a trend that is driven by the current market cycle, according to Paul Schultz, Chief Executive Officer (CEO) of Aon Securities.

There was no talk of further reinsurance rate reductions at the Rendez-Vous de Septembre in Monte Carlo, according to Luca Albertini, Chief Executive of Leadenhall Capital Partners. Instead, the focus was on the quality of reinsurance panels, building sustainable relationships and expanding opportunities.

Tullow Oil, the operator of the striken Kwame Nkrumah FPSO (floating production storage and offloading) on the Jubilee oil field, Ghana, said this morning that its reinsurers have confirmed that the ventures hull & machinery cover will pay out.

Despite the fact that reinsurance prices have been softening consistently over recent years and are forecast to continue to do so, albeit at declining rates of decline, the big four European reinsurers could still cover their costs-of-capital, according to analysts at J.P. Morgan.