Archive for July, 2022

The insurance and reinsurance industry faced above average catastrophe losses from across the globe in the first-half of 2022, with the total coming to $39 billion, some 18% above the average, according to data from Aon.

European wildfire risk is a growing threat to insurance and reinsurance markets, with the amount of land burned jumping some 75% in just one year, but the exposure is hard to adequately price, according to specialist underwriter Chaucer.

Recent changes in the strategic direction of Florida property insurance players, as well as continuing failures and challenges for other carriers, show that “no capital structure remains immune” in this marketplace, which according to ALIRT Insurance Research continues to be in a sort of free fall.

Liechtenstein-based private bank VP Bank AG has told its clients it currently sees “good prospects” for investing into insurance-linked securities (ILS), with catastrophe bonds seen as a positive diversifying addition to portfolios.

Perhaps not an unexpected conclusion from a study on global flood risk, but the latest update to insurance and reinsurance broking group parent Marsh McLennan’s Flood Risk Index shows a dramatic increase in values-at-risk of flooding is possible with climate change.

A trio of investment bank insurance and reinsurance equity analyst teams have all forecast that US domestic catastrophe losses will be reported as above-average in the coming results season, with convective storms, hail and derecho events seen as drivers.

Rating agency Demotech, Inc. has received national recognition for its abilities as a credit rating agency from the United States Securities and Exchange Commission, becoming one of just ten rating agencies to be approved as an NRSRO.

The mid-year reinsurance renewals and catastrophe bond activity saw positive developments in market dynamics according to hedge fund specialist manager K2 Advisors, which has also updated its view to “strongly overweight” for retrocession investments, in response to improved conditions.

Aon’s private catastrophe bond issuance and placement platform Randolph Re has completed a $25 million Randolph Re (Series 2022-1) private cat bond deal, the third from the issuer and we suspect again for California headquartered property casualty insurer Mercury Insurance.

The latest monthly data from CaseGlide shows a resurgence in newly litigated property insurance claims at Florida’s largest P&C insurers, while the percentage of litigated claims related to the assignment of benefits (AOB) rose further.