Reinsurance News

A new filing in the Vesttoo bankruptcy case provides a more detailed view of the scale of the alleged fraud, as Aon’s segregated accounts and reinsurance transformer company White Rock Insurance (SAC) Ltd. notes that there were 37 letters of credit (LOCs) that were likely invalid, which represented some $2.35 billion in value.

The cyber insurance marketplace needs the backing of robust and healthy cyber reinsurance, cyber retrocession and cyber insurance-linked securities (ILS) markets, if it is to achieve its potential, according to S&P Global Ratings.

Porch Group subsidiary Homeowners of America Insurance Company (HOA), a managing general agent (MGA) and insurance carrier hybrid, has now filed to appear as a creditor in the Chapter 11 bankruptcy case of beleaguered insurtech Vesttoo, as HOA looks to protect its rights and any possible recoveries that can be made.

Insurance and reinsurance market loss estimates from the deadly wildfires that struck the island of Maui, Hawaii earlier this month, are now being seen as potentially as high as $7 billion, given high property values, the cost of reconstruction, plus elements such as additional living expenses and business interruption that are expected to be elevated.

The impacts of what was once hurricane Hilary in California and surrounding states is estimated as likely to drive a private insurance market loss of close to $600 million, according to Karen Clark & Company.

Two of the co-founders of under-fire insurtech Vesttoo have now been fired by the Board, with CEO Yaniv Bertele and Chief Financial Engineer Alon Lifshitz now officially removed from the company, and a new allegation has been reported, that a 2019 transaction facilitated by Vesttoo also had a fake letter of credit (LOC).

AIG will come out of the sale of its Validus reinsurance business and the AlphaCat Managers insurance-linked securities (ILS) platform to RenaissanceRe, with a significantly reduced amount of natural catastrophe volatility, case in point that the insurers 1-in-100 hurricane PML will drop by 70%.

The reinsurance sector is leading on innovation across the broader spectrum of the insurance space, according to rating agency AM Best, who note that the use of third-party capital is one of the highlights that has helped to deliver flexible, off-balance-sheet capital.

During its bankruptcy case, beleaguered insurtech Vesttoo has been approved by the court to continue paying its staff, including certain employee benefits and expenses, but at a hearing this week the US Trustee balked at the suggestion terminated staff and founders may receive payments.

For the global reinsurance industry, the stakes are particularly high this wind season, as the occurrence and landfall of any hurricanes that caused significant losses could propel rates even higher, while a “super-clean” wind season could lead to softening in 2024, analysts at Berenberg have said.