Archive for October, 2021

Property catastrophe reinsurance rates are expected to increase by double-digits in 2022, as reinsurers absorb and then react to the costs of more natural catastrophe loss events that are deemed linked to climate change, according to rating agency Fitch.

According to John Neal, the CEO of insurance and reinsurance market Lloyd’s, hurricane Ida has the potential to be a $40 billion industry loss event and recent catastrophe frequency and severity suggest that re/insurers catastrophe allowances must rise.

Retrocessional reinsurance focused ILS investment funds and strategies could find as much as 70% to 80% of their capital trapped or lost after the challenging catastrophes of 2021, according to RenaissanceRe’s CEO Kevin O’Donnell.

Global insurance and reinsurance giant Chubb reported a $1.15 billion pre-tax hit from catastrophe events that occurred during the third-quarter of 2021, with $806 million of this coming from hurricane Ida and a corresponding rise in recoverable suggesting reinsurance support was tapped.

Global reinsurance company SCOR has again demonstrated the value of its robust retrocession program, as these protection arrangements seemingly helped to offset some of the catastrophe claims burden experienced during the last quarter.

The results of our latest global reinsurance market survey, in collaboration with Reinsurance News, suggest that the use of insurance-linked securities (ILS) capacity is likely to rise again at the January 1st, 2022 renewals.

U.S. primary mutual insurance company USAA is hoping to upsize its latest catastrophe bond, with the new Residential Reinsurance 2021 Limited (Series 2021-2) transaction now seeking up to $300 million of collateralized multi-peril property catastrophe reinsurance for the insurer, while price guidance has been lowered.

Tremor Technologies, the insurtech with a technology-based programmatic insurance and reinsurance risk transfer marketplace, has added another innovative feature to its software, now launching Tremor Blackboard™ a real-time collaboration tool so remote and global teams can work together on their reinsurance placements.

Markel CATCo Investment Management said this morning that it has received a “substantial level of investor support” for its proposed buyout transaction to speed the winding up of its retrocessional reinsurance investment funds and has updated the terms to be more favourable, in response to investor feedback it seems.

Sources have told us that the recently issued $21.5 million Isosceles Insurance Ltd. (Series 2021-H) private catastrophe bond transaction provides reinsurance coverage for a motor insurance portfolio.