Archive for November, 2016

The outlook for the U.S. property & casualty insurance sector is now negative, according to Fitch Ratings, reflecting the challenging operating environment and expectation that competition is set to increase, while profitability has been on the wane.

A recent study completed by the Met Office that was commissioned by the Lloyd’s of London specialist insurance and reinsurance marketplace, supports the notion that independence in re/insurers’ internal models for weather events across the globe is appropriate, suggesting no need to hike required capital levels.

The recent magnitude 7.8 earthquake that struck the Kaikoura area of New Zealand could result in a cost to the economy of up to NZ$8 billion, with insurance and reinsurance potentially paying as much as NZ$5 billion (almost US$3.6 billion) of the loss, according to the country’s Reserve Bank.

As the insurance-linked securities (ILS) space continues to evolve, increasingly becoming an integral part of the reinsurance and broader risk transfer landscape, industry experts have underlined the benefits of establishing a set of standard, and comprehensive information and reporting guidelines to assist investors in the space.

It’s been reported that a number of countries in South America are looking to sponsor a catastrophe bond to protect against earthquake risks, with the help of reinsurance giant Swiss Re.

During 2015 Bermuda domiciled insurers utilised a range of reinsurance solutions to insulate themselves from catastrophe events, with the level of reinsurance dependent on the peril, according to a new report from the Bermuda Monetary Authority (BMA).

American Strategic Insurance Group’s second catastrophe bond issuance, the currently in the market $200 million Bonanza Re Ltd. (Series 2016-1), has now been priced at the low-end of the already reduced guidance, once again reflecting the strong appetite investors have for new cat bond issues.

Despite the ongoing softening reinsurance market cycle that’s testing the resolve of many companies, a recent slowdown in rate declines, rational behaviour and continued innovation has left some industry leaders with a sense of optimism about the space.

Reinsurance brokerage Willis Re, a division of Willis Towers Watson, has promoted James Kent from his current role as Co-President of Willis Re and President of Willis Re North America to the position of Global Deputy CEO, Willis Re, with immediate effect.

Despite hurricane Matthew making landfall on the U.S. coastline and causing expected insured losses in the billions of dollars, it’s not expected to have any positive impact on pricing in the reinsurance market with the sector remaining heavily capitalised, according to Jon Springer, President and Chief Risk Officer (CRO), Universal Insurance Holdings, Inc.