Archive for November, 2017

Rates-on-line for industry loss warranties (ILW’s) have increased by as much as 30% following the third-quarter catastrophe losses suffered by the industry, perhaps giving a glimpse of where retrocessional reinsurance could move at the forthcoming January renewals.

The latest catastrophe bond from the California Earthquake Authority (CEA), the Ursa Re Ltd. (Series 2017-2) transaction, has so far not increased in size, still targeting $400 million of collateralized quake reinsurance, but the price guidance has now been fixed at levels which show very little in the way of uplift.

Here are the ten most popular news articles, week ending 19th November 2017, 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.

Alternative capital and the insurance-linked securities (ILS) market is going to be an influential factor when it comes to determining just how much reinsurance and retrocession rates will rise in 2018, according to Fitch Ratings.

Progress has been made in the mission to reauthorise and reform the National Flood Insurance Program (NFIP), with H.R. 2874, also known as the 21st Century Flood Reform Act having now passed the House of Representatives with full approval, including amendments by substitution ensuring measures on reinsurance, risk transfer and flood ILS or cat bonds […]

Karson, a global provider of liquidity, capital and collateral solutions to the insurance industry, is anticipating strong demand for its newly launched KT-Notes, which are designed to address the collateral needs and obligations of reinsurers and insurance-linked securities (ILS) investors.

Recent catastrophe losses could be a “dreaded scenario” for reinsurers, as they are significant enough to create a drag on earnings, but the losses are not expected to be significant enough to “meaningfully change market dynamics and pricing for a sustained period of time,” A.M. Best says.

The California wildfires are now thought likely to cost the insurance and reinsurance industry up to $10.5 billion by risk modeller AIR Worldwide, a significant uplift on its first estimate after the firm surveyed the affected areas and reassessed replacement values for certain properties.

Primary insurance giant Allstate has estimated that the California wildfires will cost the firm around $452 million in losses, before tax, which took its October catastrophe loss tally to $514 million.

Insurance-linked securities (ILS) investors are “informed” and their lack of naivety suggests an expectation of higher rates in 2018, and many investors in the space have additional appetite despite recent catastrophe events, according to Ed Noonan, Chairman of the Board and Chief Executive Officer (CEO) of Validus Holdings.