Archive for October, 2023

US primary insurance giant Travelers will continue to evaluate its reinsurance arrangements, dependent on market conditions. But, in the face of elevated catastrophe weather losses, the company is likely to retain more than its peers, as “we like our underwriting”, CFO Dan Frey said.

While reinsurance and insurance-linked securities (ILS) continues to see a rotation out of certain investors, given macro factors and concerns over volatility, at the same time there is a new crop of investors rotating in that may better understand the fundamentals of the space.

Natural catastrophe losses covered by public and private insurance or reinsurance have already reached US $93 billion by the end of September, putting 2023 on-track to be another year with over US $100 billion of insured catastrophe losses, Gallagher Re has said.

Global reinsurance company Swiss Re said this morning that it anticipates rising demand for natural catastrophe reinsurance, with up to €5 billion of additional demand expected for the EMEA regions cedents alone this year.

Specialty re/insurer AXIS Capital is set to become the sponsor of the market’s very first 144a cyber catastrophe bond, with a $75 million Long Walk Reinsurance Ltd. (Series 2024-1) transaction being marketed to insurance-linked securities (ILS) funds and investors, Artemis can reveal.

Distribution focused BRP Group, or Baldwin Risk Partners, has announced the launch of a new reinsurance broking arm named Juniper Re LLC, as the company sees a “unique market opportunity” to become a full-service broking platform.

US primary insurer Travelers has revealed another quarter of elevated catastrophe losses, as the impacts of severe convective storms, wind and hail took its nine month catastrophe losses to almost $2.9 billion by the end of September.

Speaking in Bermuda at the annual Convergence event last week, David Ross of data-driven cyber underwriting company Envelop Risk, explained that the cyber insurance-linked securities (ILS) market has a long-way to grow, given the size of the opportunity and the need for cyber risk capital.

The total-return of the outstanding catastrophe bond market in 2023 has now surpassed 16%, beating the previous record and staying on-track to deliver an investment return that might surpass 20% by year-end, which could, in future, be a challenging record to beat.

In what could turn out to be a ground-breaking development, parametric disaster insurance risk pools African Risk Capacity Limited (ARC), Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC), the Pacific Catastrophe Risk Insurance Company (PCRIC), and the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), have signed an MOU and will explore a joint reinsurance facility to […]