Archive for November, 2018

Competition between the widening array of regulatory jurisdictions that offer insurance-linked securities (ILS) platforms for market structures and services should serve to grow the size of the market, making shared experiences important so each can learn from others lessons learned.

Non-traditional capital, managed by insurance-linked securities (ILS) funds or by more traditional underwriters, has “cracked the moat” of the Lloyd’s insurance and reinsurance market and is unlikely to leave, but it’s still not clear the market has developed its strategy on how best to take advantage of it.

Global insurance and reinurance group AXA said that it plans to further enhance and increase its insurance-linked securities (ILS) capacity as part of its mission to de-risk and control its catastrophe exposure across the group, with further reductions in exposure expected in 2019.

One collateralised reinsurance sidecar transaction that had been lined up for the January 2019 renewals has been pulled due to a lack of appetite from investors, while at the same time other sidecar arrangements are now being questioned for changes being proposed to their terms, Artemis understands.

Multi-line U.S. primary home and auto insurer Mercury General Corporation is set to pass as much as $216 million of its losses from the recent Camp and Woolsey wildfires in California to its reinsurance partners, leaving the firm retaining a net loss of just $37 million.

The recent Camp and Woolsey wildfires in the state of California are estimated to have caused total residential and commercial property losses of between $15 billion and $19 billion, according to Corelogic.

RenaissanceRe could be on the hook for an enlarged share of losses from the current California wildfire outbreaks given the firm had completed two large wildfire excess casualty deals in the second and third quarters of this year, with its Upsilon vehicle taking some of the risk in the latter transaction.

We’re delighted to announce further additions to the agenda for our next conference, as the World Bank and the International Federation of the Red Cross join the speaking roster of our February 1st 2019 insurance-linked securities (ILS) conference in New York, Artemis ILS NYC 2019.

The number of deaths confirmed by the World Health Organisation (WHO) from the latest Ebola outbreak in the Democratic Republic of Congo has risen again and the risk of the outbreak spreading to a neighbouring country is said to be very high, all of which heightens the risk for the World Bank’s pandemic catastrophe bond.

ILS and some reinsurance markets are beginning to show signs of fearing and in some cases expecting an Irma-like loss creep to occur with more recent hurricane Michael, leading some to even suggest that the industry insured loss could near $12 billion.