Reinsurance News

Swiss-headquartered fintech Cerchia has continued to build momentum around its capital markets focused direct risk transfer platform, with a particularly notable cyber trade, that saw a cyber industry-loss warranty (ILW) transacted using a PCS Global Cyber industry-loss index trigger.

Reinsurance capital supply is set to outstrip demand at certain return periods, according to Howden Tiger’s Head of North America Reinsurance, Wade Gulbransen, who explained that, as a result, the broker is asking clients and markets to look at how frequency cat loss issues can be addressed.

With the COP28 climate talks beginning this week, Moody’s Investors Service has taken a look at the climate and environmental exposure inherent within rated global debt issuance, finding that the total has doubled since 2015 when the Paris Agreement climate change accord was signed.

Rating agency AM Best is maintaining its stable outlook for the global reinsurance industry, but noted that new capital remains cautious on the sector despite a growing need for more of it to flow in.

Arch Capital Group, the Bermuda headquartered insurance and reinsurance company, has hired Greg Habay, an executive with experience across insurance-linked securities (ILS) and reinsurance-linked investing, to a new position focused on developing third-party capital business and managing relations with ILS partners.

Cayman Islands based collateralized reinsurance company Northern Reinsurance SPC, Ltd. (Northern Re) has taken its committed capital to $75 million, after it raised an additional $50 million from investors to allocate to programs of high-frequency, low-severity insurance risks.

The Asian Development Bank (ADB) has drawn up a plan for implementation of a disaster risk insurance facility for the Central Asia Regional Economic Cooperation (CAREC) countries, for which insurance-linked securities (ILS) would be seen as an important source of reinsurance capacity and it has even mooted issuing them itself.

Catastrophe exposed commercial property insurance renewals are expected to see some of the biggest rate gains in 2024, as pressure continues and a challenged reinsurance market drives buyers towards alternative solutions, to offset rising rates.

Having spent time in Bermuda and attended the recent PwC Insurance Summit on the island, the equity analyst team at BMO Capital Markets has concluded that the insurance and reinsurance industry is suffering a lack of confidence in its risk models, which they say has been a key driver in capital flight and retrenching higher.

SCOR Investment Partners, the asset management arm of the French reinsurance group and a manager of insurance-linked securities (ILS) funds, has announced a new Chief Executive Officer (CEO) appointment, with long-standing executive Louis Bourrousse taking over the top-position.