Reinsurance News

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.

Speaking Friday afternoon during a panel discussion convened by Aon’s Reinsurance Solutions division, senior executives from some of the world’s largest reinsurers said that while they don’t anticipate a significant influx of new capital, they do expect insurance risks will continue to attract investors.

The Philippines World Bank facilitated catastrophe bond is deemed “likely to default” after the landfall and impacts of super typhoon Noru, according to investment fund manager Plenum Investments.

In the space of just 24 hours, typhoon Noru has explosively intensified into super typhoon Noru as it approaches the Philippines and now packing sustained winds of more than 150 mph the storm is a potential threat to the countries World Bank facilitated catastrophe bond.

The catastrophe bond market is very well-positioned, with cedent interest in utilising cat bonds as reinsurance risk transfer tools on the rise, while pricing has already risen high enough to attract investors to deploy more capital, according to GC Securities Shiv Kumar.

The government of Singapore continues to look to the capital markets to push the boundaries in developing its insurance and reinsurance market, with an ambition to further develop the ability of the sector to tap capital market appetite for risk.

In a positive signal for the continuing use of private insurance and reinsurance capital to support the country’s natural disaster and catastrophe insurance needs, the Mexican government has renewed a $250 million layer of traditional catastrophe protection.

This morning, participants in the Lloyd’s insurance and reinsurance market were warned to be cognisant of challenging reinsurance market conditions and the renewals that lie ahead, but were also told that the market will support those able to capitalise on this on the inwards side.

The roller-coaster ride for Florida’s Citizens Property Insurance Corporation continues, with the insurer of last resort’s policy count continuing to rise, as a Senator in the state noted that Florida’s property insurance industry is in “collapse”.

Mortgage insurer Essent Guaranty, a wholly owned subsidiary of Essent Group Ltd., has completed its latest insurance-linked securities (ILS) placement, securing $237.9 million of fully collateralised excess of loss reinsurance via Bermuda-based special purpose insurer (SPI), Radnor Re 2022-1 Ltd.