Archive for May, 2020

U.S. commercial property insurance rates are now rising at their fastest pace since 9/11, according to the Council of Insurance Agents & Brokers (CIAB).

H.R. 7011, or the Pandemic Risk Insurance Act of 2020, has been introduced by politicians and industry leaders including insurance and reinsurance market representatives and proposes the creation of a Pandemic Risk Reinsurance Program to compensate for business interruption caused by future pandemics.

The government of the Philippines will go back to the global reinsurance market to invite fresh bids to provide the capacity to underpin its roughly US $19.6 billion insurance of state-owned assets and infrastructure, with the application process now simplified somewhat.

Hurricane loss events that impact a particularly widespread area, even with lower wind speeds, could be the catastrophes that see a much greater degree of loss amplification and inflation due to the ongoing Covid-19 pandemic, according to Karen Clark & Company.

Some insurance-linked securities (ILS) funds continue to be impacted by the catastrophe activity of recent years, as the managers of the ILS funds factor rising ultimate loss figures reported by cedents into loss reserve adjustments for prior year events.

Michael Millette, Founder & Managing Partner at Hudson Structured Capital Management, a specialist alternative asset manager with a focus on sourcing insurance and reinsurance linked returns for its investors, joined us for our latest video interview.

Insurance and reinsurance market losses from Australia’s series of summer catastrophe loss events have now risen to a new high of almost AU $5.1 billion, according to the Insurance Council of Australia.

A new insurance-linked securities (ILS) risk securitisation facilitator and risk transfer consultancy named Replexus Group has been launched by Cedric Edmonds, formerly at Swiss ILS manager Solidum Partners.

Reinsurance sidecars as a source of protection are in high-demand right now, as ceding companies look to bring third-party capital support into their business models to help buffer against any potential downside caused by catastrophe losses through the year ahead.

Weather hedging seems to have worked as intended for Star Group (formerly Star Gas Partners) in the first-quarter of 2020, as higher temperatures in the United States triggered a payout under the energy providers weather derivatives arrangements.