Reinsurance News

As participants in the insurance, reinsurance and insurance-linked securities (ILS) industry grapple to understand the extent of their possible exposure to the severe convective storms and tornadoes of recent days, AM Best has warned that loss events like this will drive a re-examination of aggregate reinsurance pricing and supply.

Our sister publication Reinsurance News surveyed a segment of its industry readership as to how high they anticipate the insurance and reinsurance market loss from the recent severe storm and tornado outbreak will rise, with the largest percentage opting for between $2.5 billion and $5 billion.

Michael Millette, Managing Partner at insurance-linked securities (ILS), reinsurance and transportation investment manager Hudson Structured Capital Management Ltd., has explained that without credible modelling, a cyber ILS market is unlikely to develop as capital won’t want to support the risk unless it has a better understanding of it.

Ariel Re, the Bermuda-headquartered international reinsurance company, has hired Apryle Oswald to the newly created role of Chief Analytics Officer.

Deployable (or not trapped and available to put to work) capital in the insurance-linked securities (ILS) sector is estimated to have fallen to around $70 billion to $75 billion, according to analysts at KBW.

The Ardonagh Group, a UK headquartered independent insurance broking, underwriting, servicing and management company and the owner of reinsurance broker Inver Re, has secured a major investment that values the firm at $7.5 billion.

Preliminary data from CoreLogic shows that properties with a reconstruction value of almost $3.7 billion were exposed to the tornado outbreak at the weekend, with $2.9 billion in Kentucky alone.

Dutch headquartered life, pensions and annuities focused insurer Aegon has secured longevity reinsurance to cover a €7 billion of pensions from Reinsurance Group of America (RGA).

Tremor Technologies, the insurtech with a technology-based programmatic insurance and reinsurance risk transfer marketplace, has experienced particularly strong growth in 2021, expanding the amount of risk transferred through its marketplace with $175 million of premium transacted this year.

The recent outbreak of deadly tornadoes and damaging severe convective storms in the United States has been estimated as a roughly $3 billion insurance industry loss, by risk modeller Karen Clark & Company.