Archive for October, 2016

The insurance and reinsurance industry could face losses from hurricane Matthew of up to $5 billion for damage in the U.S. and up to $3 billion for damage across the Caribbean, according to risk modelling firm RMS.

ILS, catastrophe and weather risk-linked investment fund manager Nephila Capital is set to participate in another takeout of insurance policies from Florida’s Citizens Property Insurance Corporation, alongside its MGA, Velocity Risk Underwriters LLC.

Verto Syndicate 2689, a newly approved “in principle” Lloyd’s of London syndicate, aims to ease access to the returns of Lloyd’s underwriting business for private capital investors through proportional quota share reinsurance of other syndicates.

The continued evolution of producer owned reinsurance companies (PORCs) enables increased access to the “wonderful” pot of alternative capital, helping insurance-linked securities (ILS) build a closer relationship with the ultimate risk buyer, according to Oliver Schofield.

RBC Capital Markets feels it’s too early to hold a positive stance on the European reinsurance sector as rates are expected to continue declining into 2017 and the potential for catastrophe losses persists, with hurricane Matthew highlighting the significant impact such an event could have on the market.

Industry insured loss aggregation consists of a few basic components, but they’re crucial to the process. The three basic ingredients are reliable data sources comprising sufficient share of an event to enable extrapolation of the full market loss, a set of rules (methodology) and a way to define events, and a threshold below which events […]

One of the side-effects of the disruptive Insurtech wave, that is rippling through insurance and reinsurance markets, is an expectation that it will help to boost the importance of reinsurance capital, as it supports new business models and backs technology start-ups.

The impact of hurricane Matthew on insurance-linked securities (ILS) players will vary by fund, but could result in minor negative hits to returns during October, according to analysis from Milliman’s Aaron Koch.

Global insurance and reinsurance players Aegon, Allianz, Munich Re, Swiss Re and Zurich have teamed up to collaborate on developing and proving the use of blockchain distributed ledger technology and smart contracts within the industry, beginning with a retrocession proof of concept.

Product innovation within the insurance-linked securities (ILS) space is key to market’s development and usually acts as a catalyst for expansion, a trend that will need to continue to enable the capital markets to play a bigger role outside of the catastrophe space, according to industry leaders.