Archive for September, 2016

If RoEs in the reinsurance industry continue to decline investors will “at some point question putting their capital into this space… but luckily we’re not quite there yet”, according to Kathleen Faries, Head of Bermuda at Tokyo Millennium Re, the global reinsurance operations of Tokyo Marine & Nichido Fire Insurance Company.

The trend of insurers, reinsurers, and ILS players increasing their interest in specialty business lines will likely “intensify” rate declines, and could leave those that lack discipline and underwriting knowledge in a compromising position, warns Keefe, Bruyette & Woods (KBW).

The four major European reinsurers continue to use the features and capacity of the insurance-linked securities (ILS) space to transfer peak risks. Utilising alternative capital provides the firms with additional underwriting flexibility and is supportive of strong risk management, according to Fitch Ratings.

Reinsurance broker Aon Benfield’s risk modelling unit Impact Forecasting says that super typhoon Meranti, which is tracking towards China with winds of an estimated , has medium to high insured loss potential.

The innovatively generated, and expanding source of alternative reinsurance capital is a game changer that has uberized the insurance and reinsurance industry, according to industry leaders speaking at the 2016 Monte Carlo Reinsurance Rendezvous.

The securitisation of risks via third-party backed reinsurance capital “makes perfect sense” for natural catastrophe risks owing to the underinsurance of peak risks, and is an important risk transfer tool that is most likely here to stay, according to Christian Mumenthaler, the Chief Executive Officer (CEO) of Swiss Re.

TigerRisk Capital Markets & Advisory, the investment-banking and capital markets subsidiary of reinsurance broker and capital advisor TigerRisk Partners LLC, has established itself in London with the hire of Leo Beckham from Willis.

Global reinsurance giant Hannover Re expects the demand for insurance-linked securities (ILS) structures to grow in the coming years, and that reinsurance prices will show greater stability at January 1st 2017.

The reinsurance industry needs to get better at promoting the value of its catastrophe products to buyers, thinks Dominic Christian, Executive Chairman, Aon Benfield International. Property catastrophe reinsurance plays a vital societal role as well as generating significant premiums for the industry, he told Artemis ahead of the Rendez-Vous de Septembre in Monte Carlo.

When the global reinsurance market begins to turn from its softening cycle, issuers of catastrophe bonds will benefit from an increased demand for cover, according to JLT Re’s David Flandro.