Reinsurance News

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.

Typhoon Nanmadol made landfall in southwest Japan in the Kagoshima region of Kyushu yesterday. While winds were reported as high as 150 mph, in terms of gusts, Nanmadol noticeably weakened, with rainfall, flooding and landslides appearing the main threats.

Typhoon Nanmadol is a potentially significant Japanese industry loss threat for insurance and reinsurance market interests, while meteorologists are warning it could be more impactful than recent damaging typhoons Jebi and Hagibis.

Acrisure Re, the reinsurance broking unit of the Acrisure group has hired Alex Orloff as a Managing Director of its Acrisure corporate advisory and solutions division (ARCAS) North America, who brings experience in reinsurance investing, insurance-linked securities (ILS) and investment analytics.

A true reinsurance hard market may be around the corner, particularly in US property lines such as coastal wind exposed towers, with inflation a key driver and expected to result in a need for as much as $20 billion of new capacity to soak up demand at the renewals.

Update: See our more recent article on typhoon Nanmadol. While tropical storm Fiona may be concerning some, given the uncertainty in its eventual path, on the other side of the globe typhoon Nanmadol is seen as a relatively significant Japanese loss threat by insurance and reinsurance market interests.

Broking group Aon is expecting a strong chance for another record year of issuance in the catastrophe bond market, with the pipeline of potential deals that could get executed being as long as it has ever been for the firm.

Primary insurance carriers specialising in property risks in Florida are continuing to cede rising levels of losses to their reinsurance capital partners, even without there having been any major storms of late, rating agency AM Best has explained.

Aon has made two senior appointments within its Aon Insurance Managers arm in Bermuda, with a new Managing Director of the operation and a new Head of its White Rock activities on the island.

As the insurance-linked securities (ILS) market continues to reset itself after a number of years of heavy catastrophe losses, growth is likely to be more prominent in areas such as catastrophe bonds and top-layer peak peril strategies, that have displayed more consistent performance, Twelve Capital’s Marcel Grandi believes.