Archive for October, 2020

The current market environment is not a traditional hard market, according to insurance and reinsurance broking, risk management and servicing group Arthur J. Gallagher, as this is an “underwriting driven” hard market, where carriers are being forced to ensure they can deliver a profit from their underwriting sides going forwards.

The California Earthquake Authority’s (CEA) reinsurance program has reached a new record high in terms of size at nearly $9.6 billion, which is up almost $1 billion since the January renewals.

Mortgage insurers Genworth Mortgage Insurance, a subsidiary of Genworth Financial, and Radian Guaranty, part of the Radian Group, have both closed new mortgage insurance-linked securities (ILS) issuances in the last week, successfully securing $740 million of capital markets backed, collateralized mortgage reinsurance between them.

Third-party sources of reinsurance capital and the use of insurance-linked securities (ILS) has become increasingly important for Aspen Insurance Holdings Limited, the Bermuda headquartered insurance and reinsurance group, leading to success in capital raising for the firm.

Parts of southern California are back on a wildfire Red Flag warning for the next two days, as what officials are calling the most critical fire weather conditions since at least October 2019 are forecast.

The northern Gulf of Mexico coastline and in particular Louisiana is facing another strong tropical storm or perhaps even a hurricane threat this week, as Zeta, the 27th named storm of the 2020 Atlantic season takes aim.

Here are the ten most popular news articles, week ending 25th October 2020, 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 health of the insurance-linked securities (ILS) market and the commitment of its investors to providing efficient and fully collateralized reinsurance capacity were displayed by the successful upsizing and completion of the California Earthquake Authority’s (CEA) latest catastrophe bond, according to Swiss Re Capital Markets.

Kettle Re is launching as a reinsurance provider utilising deep-learning and artificial intelligence to create proprietary risk models and analytics that can help it more accurately and sustainably price climate-linked exposures, starting with wildfires.

The rapid growth of ESG (environmental, social, governance) appropriate investment products is set to create a “paradigm shift” in investment markets, which could lead to more than 50% of European mutual fund assets invested in ESG funds as soon as 2025, according to PwC.