Archive for September, 2016

The utilisation of reinsurance protection is transitioning to serve a wider range of goals, and the integration of efficient, alternative reinsurance capital is helping the market achieve this, according to Swiss Re.

As reinsurance firms continue to shape their responses to the challenging and competitive market environment, searching for profitable business remains a key necessity and the desire for this relevance could drive more mergers & acquisitions, says A.M. Best.

Craig Wenzel, Head of Alternative Capital at XL Catlin, does not understand why there is any concern amongst cedants that alternative reinsurance or ILS structures could fail to payout in the event of a major loss.

The rise of catastrophe bonds and insurance-linked securities (ILS) issuance in the global reinsurance marketplace is not a market disruptor, but supportive and supplementary to the global reinsurance market, according to SCOR’s Dennis Kessler.

PERILS AG, the provider of industry-wide catastrophe exposure, industry loss data and indices, recently announced its expansion into Australia, a move that Chief Executive Officer (CEO), Luzi Hitz, says will open up new trading possibilities and that has received strong market support.

The majority of reinsurance equity investors are likely to remain in the sector despite persistent rate declines as returns continue to be more favourable than other industry sectors, according to Standard & Poor’s (S&P).

According to risk modelling firm RMS the insurance and reinsurance industry is not expected to face any more than $400m in industry losses as a result of hurricane Hermine’s recent landfall in Florida and the subsequent wind and coastal flooding caused by the storm.

AIR Worldwide, the global catastrophe and insurance risk modelling firm, has estimated that “industry ground-up” insurable losses, so including exposures eligible for insurance coverage (regardless of whether they are actually insured).

Insurance-linked securities (ILS) and catastrophe bond returns continue to deliver attractive results despite the lower rates in the reinsurance market, outperforming most benchmarks in the last year, according to the latest market report from Aon Securities.

Launching an insurance-linked securities (ILS) market in the UK is a key deliverable over the next six months for the London Market Group (LMG), as the anticipated publication of ILS legislation and its enactment is seen as a critical piece of the London insurance and reinsurance market’s modernisation.