Archive for November, 2018

The global catastrophe bond market has experienced impressive growth in recent years and continues to claim a larger slice of the overall reinsurance market pie. However, some feel it is unlikely that the market will double in size from where it is today.

The current outbreak of wildfire activity in California is now the most destructive on record and joint deadliest, with the Camp Fire now having destroyed more than 6,700 structures, while the Woolsey Fire has expanded further and as a result multi-billion dollar losses are to be expected for insurance, reinsurance and ILS market interests.

Here are the ten most popular news articles, week ending 11th November 2018, 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 or get our email alerts for every article we publish.

The insurance-linked securities (ILS) market has come around full-circle with the majority of insurers and reinsurers now embracing an asset class that is modernising insurance practices, according to industry experts and executives.

For countries in the ECIS region, catastrophe bonds can remove risks from government balance sheets and reinforce macro-economic stability while providing access to rapid recovery funding, but more understanding of this asset class needs to take place in the region, according to industry experts.

Update: Read our latest on the potential for multi-billion dollar losses from this fire outbreak. A northern California wildfire named the Camp Fire has destroyed more than one thousand homes and structures in less than 24 hours, with around 15,000 more threatened and the fire continuing to spread out of control.

AXIS Capital said yesterday that it estimates a hit of up to $120 million from hurricane Michael based on an expectation of a roughly $10 billion industry loss, net of its reinsurance and retrocession, meaning some of the ceded impact is likely to fall to its strategic capital partners.

New York based alternative investment specialist, BroadRiver Asset Management, L.P, has raised $876 million of commitments for its third life settlements fund, with capital coming from institutional limited partners from North America, Europe, and the Middle East.

With Lloyd’s of London market participants generally beginning to view the idea of the insurance-linked securities (ILS) having more involvement in and access to Lloyd’s as a positive, or at least inevitable, they should be looking to ILS as one way to increase the capital efficiency of their operations in the market, according to Vario.

Insurance-linked securities (ILS) and catastrophe bond limits at risk of losses in the Asia Pacific region continue to expand, according to reinsurance broker Guy Carpenter, which results in increasing global diversification opportunities for the ILS investor base.