Reinsurance News

With major hurricane Ian approaching its Florida landfall, the main mutual insurance-linked securities (ILS), catastrophe bond and reinsurance linked investment funds have experienced some declines, with Stone Ridge Asset Management’s strategies leading the way.

As major hurricane Ian approaches Florida, it’s clear this storm could be the first major test for the re-underwriting that ILS fund markets have been undertaking over the last few years and renewal seasons, providing a test for ILS fund manager and reinsurer processes and discipline.

Descartes Underwriting, an insurance technology (insurtech) focused managing general agency (MGA) that specialises in parametric and data-driven risk transfer products, has promoted one of its senior employees Lukas Schönach to become its Global Origination Practice Lead.

Major hurricane Ian’s impacts and losses are set to add to the capital pressure experienced by Floridian primary insurers and even the state’s new $2 billion Reinsurance to Assist Policyholders program is unlikely to make insurers whole again, given they now lack private reinsurance protection.

The Demex Group, a climate risk focused insurtech that aims to deliver climate-resilience through financial risk solutions on a global scale, has made a key hire, appointing Matt Coleman who most recently worked at Nephila Climate as its Chief Risk Officer.

So far, major hurricane Ian’s approach to the west coast of Florida and the Tampa Bay region has not stimulated a significant amount of catastrophe bond trading, with the secondary market relatively quiet. Except for one telling trade that shows investor nerves over potential storm surge impacts are rising.

The challenges that have been and continue to be faced by Florida’s property insurance marketplace effectively raise the risk of more financial impacts for Florida’s taxpayers, should a major loss event occur from hurricane Ian, it seems.

Driving home the continued uncertainty over the eventual insurance, reinsurance and insurance-linked securities (ILS) market impact from hurricane Ian, investment manager Twelve Capital said that modelled loss scenarios range from substantial to nothing for its ILS portfolios.

Stere, an insurance technology (insurtech) start-up that has created a capacity platform to help connect embedded insurance partners and MGA’s to reinsurance capital, has announced a $5 million Seed+ capital raise from investment manager Vida Capital.

Typhoon Nanmadol’s impact in Japan is likely to be a manageable loss for the Japanese insurance industry, thanks to their robust capital, strong reinsurance programs and the fact loss creep is not expected to be an issue like previous storms that hit the country.