Reinsurance News

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.

Insurance industry losses from natural catastrophe events are preliminarily estimated to reach $105 billion in 2021, according to global reinsurance firm Swiss Re.

Capacity to support aggregate retrocessional reinsurance renewals at 1/1 is “extremely scarce” according to analysts at KBW, who after a second day of meetings with Bermudian companies concluded that significant rate increases are going to be required for this segment of the market.

Broking powerhouse Aon has warned that the industry faces a multi-billion loss from the US tornadoes that struck at the weekend, but notes that at this stage it only anticipates a “limited portion” of the losses being ceded to reinsurance.

Lloyd’s of London syndicate manager and private capital specialist Argenta Group suggests that the weekend tornado damage in the southeastern United States could result in an industry loss that it likens to the 2020 Derecho event, that resulted in an estimated $7 billion of costs for insurance and reinsurance markets.

As the proposal of a process to buyout investors in the Markel CATCo Investment Management retrocessional reinsurance investment funds has been drawn out by legal appearances and is now waiting for a court decision to proceed, the investment manager has extended the expiry date of the support undertakings it received from investors.

At this still early stage following the tornadoes and severe storms that struck the United States this weekend, it’s not yet possible to rule out any loss impacts to ILS investors, according to Twelve Capital.

Global reinsurance giant Munich Re has said that reinsurance alone cannot absorb the systemic risk that climate change brings, citing the need for public private partnerships and government intervention.

The weekend’s significant tornado activity in the United States could affect some aggregate catastrophe bonds, according to insurance-linked securities (ILS) asset manager Plenum Investments.