Reinsurance News

After Florida Governor Ron DeSantis claimed on television that the states Citizens Property Insurance Corporation “is not solvent”, the CEO of the insurer of last resort has responded saying that Florida Citizens financial structure means it “will always be able to pay claims”.

With the reinsurance market increasingly optimistic and more capacity emerging, Marsh McLennan Agency has said that it would take a single loss event costing the industry more than $75 billion to temper that.

The Supreme Court of Bermuda will hold a hearing in relation to the Vesttoo bankruptcy case this week, as the focus for creditors and cedents turns to receiving approval to proceed with the proposed settlement agreements under the Chapter 11 bankruptcy plan.

According to data, analytics and modelling firm CoreLogic, the 2024 severe and convective weather season in the United States is already breaking records for hail, with a recent event outstripping even those from the costly year of 2023.

Rating agency AM Best has explained that the expansion of named peril lists on reinsurance and retrocession arrangements at the January 2024 renewals, is not expected to make a material difference in terms of the risk covered.

Martin Hotz, Head Parametric Nat Cat, Swiss Re Corporate Solutions, has suggested there is “strong potential” for the capital markets to continue to play an important role in the parametric space.

Having shared over one billion Euros of large natural catastrophe and man-made losses with insurance-linked securities (ILS) investors in 2022, last year the figure fell considerably with reinsurance firm Hannover Re only sharing EUR 62 million in losses through fronted ILS arrangements in 2023.

According to Artemis’ sources, activity in the industry-loss warranty (ILW) market has increased in the last few weeks, as reinsurance and insurance-linked securities (ILS) markets prepare for what is anticipated to be an active 2024 Atlantic hurricane season.

Another settlement agreement has been reached in the Vesttoo bankruptcy case, as the debtors, the Official Committee of Unsecured Creditors and reinsurance giant Hannover Re have reached an agreement over funds related to a longevity swap transaction.

Rating agency AM Best has highlighted disciplined capital deployment as a feature of the insurance-linked securities (ILS) market in 2023, which, thanks in part to sustained strong pricing in reinsurance, experienced a record-breaking year.