Reinsurance News

Commenting on the state of the global reinsurance market, analysts at BofA Securities Inc. believe that, while the hard market is deemed “here to stay”, reinsurers may now be more focused on further restructuring than price at the January renewals.

The global reinsurance market is still facing an imbalance between the rising demand for protection being seen and the fact inflows of capital to the sector remain sluggish, something Munich Re is not expecting to reverse any time soon, one of its executives said last week.

African Risk Capacity Limited (ARC Ltd.) has entered into a partnership with insurtech Floodbase that will see the pair working to develop, distribute, and scale parametric flood insurance products for Africa.

The California Earthquake Authority (CEA) increased its overall risk transfer and reinsurance protection through the middle of the year, lifting the program to almost $8.86 billion in size, with its catastrophe bonds making up a steady 24% of the total.

MGIC Investment Corporation has successfully leveraged investor demand to upsize its latest sponsorship of mortgage insurance-linked securities (ILS), securing $330.2 million of reinsurance for its Mortgage Guaranty Insurance Corporation unit through the Home Re 2023-1 Ltd. issuance.

The insurance-linked securities (ILS) market and alternative sources of reinsurance capital are key providers of protection to Florida’s insurance sector and investor appetite for the risk will continue, rating agency Moody’s has said.

Vesttoo has responded to the Official Committee of Unsecured Creditors calls for its liquidation to be accelerated, stating that it has produced “a significant business plan” and that the creditors should give the insurtech the time to deliver what it believes could be a “value-maximizing transaction.”

The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility), has made two payouts for Caribbean countries parametric excess rainfall insurance policies, after tropical storm Philippe in early October.

The Official Committee of Unsecured Creditors in the Vesttoo bankruptcy case objects strongly to the insurtech’s plans to attempt to trade forward, calling these efforts a “wasteful pursuit” that is burning money that could be returned to those harmed by the extensive letter of credit (LOC) in reinsurance fraud.

Reinsurer Hannover Re believes that there could be a “meteoric”  increase in demand for reinsurance, with over €10 billion of incremental demand possible if compulsory natural peril insurance was implemented in Germany.