Reinsurance News

Hurricane Fiona’s impacts in the Caribbean are expected to be a manageable insurance and perhaps reinsurance loss scenario, but the duration of business interruption related to the storm could drive insured losses higher, AM Best has said.

Bermuda headquartered re/insurer Arch Capital is seeking up to $358.4 million of capital markets backed mortgage reinsurance protection with its latest ILS issuance, a Bellemeade Re 2022-2 Ltd. deal.

Two factors are currently being looked on very favourably by any institutional investors that are researching the insurance-linked securities (ILS) asset class, the stability of an ILS investment managers’ assets over recent years, and importantly how the amount that was actually deployable has fluctuated.

Tremor Technologies, the insurtech with a technology-based programmatic insurance and reinsurance risk transfer marketplace, has announced the launch of Tremor Sandbox™, a full-featured demo version of its software allowing reinsurance buyers and sellers to try out its platform.

Typhoon Nanmadol’s impacts in Japan are not expected to result in insurance and reinsurance market losses high enough to trouble any catastrophe bonds, according to Plenum Investments.

For major reinsurance companies, de-risking their books, such as we’re seeing with the pull-back from property catastrophe risk in some quarters, will need to be a balancing act of finding their optimal gross exposure and use of retrocession, S&P Global Ratings has said.

Many of the world’s largest pension fund investors are actively seeking out diversification opportunities, as they shift portfolios in light of global economic volatility, which could serve to further raise the profile of ILS investments.

Relatively strict asset allocation protocols could become a driver for some investors to downsize their allocations to insurance-linked securities (ILS), as broader macro-economic effects and capital market volatility mean some allocations could have to be reduced, to stay within their defined thresholds.

Bringing together the capital markets and natural catastrophe risk in reinsurance, makes “deep economic sense”, according to the CEO of Swiss Re, as leveraging ILS capital is a win-win-win for his company, Christian Mumenthaler explained in our recent interview.

The eventual losses from typhoon Nanmadol in Japan is likely to be a significant event for Japanese primary insurers, Twelve Capital believes, while the investment manager also notes that some reinsurance layers are likely to trigger on the back of the storm.