Reinsurance News

Appetite for insurance-linked securities (ILS) investments is rising according to Twelve Capital’s Florian Steiger, who sees interest in catastrophe bonds as still strong despite recent tightening of spreads, while interest in peak peril private ILS and collateralised reinsurance is on the rise.

Recent flooding in Europe and the fact Germany has suffered its most significant natural catastrophe insured losses in over two decades, suggest that demand for natural catastrophe reinsurance and its pricing will both move higher, while other major nat cat zones should also firm more in 2022, according to executives at Hannover Re.

Hurricane Ida is expected to become one of the costliest tropical storm impacts ever to affect the mainland United States, according to insurance and reinsurance broker Aon.

This morning, German reinsurance giant Hannover Re noted the resurgent insurance-linked securities (ILS) market, highlighting that it has returned to growth after a few years where capital allocated to ILS and catastrophe bonds had declined a little.

Tropical storm Nicholas formed yesterday, becoming the 14th named storm of the 2021 Atlantic hurricane season so far, and is now heading for a landfall today in Texas later today while strengthening as it goes.

There is a need for further rate adequacy at the upcoming 1 January renewals following a series of major natural catastrophe losses so far in 2021 and a high frequency and severity of claims in certain casualty classes of business.

Global Parametrics has collaborated on a new climate risk transfer product that integrates parametric risk transfer with the provision of debt financing to microfinance organisations and initiatives.

While rating agency Moody’s Investors Service forecasts continued price momentum in reinsurance, VP and Insurance Credit Analyst Helena Kingsley-Tomkins explained that rising capacity is going to limit increases.

Insurance-linked securities (ILS) market players are seen as equal partners to reinsurers for AIG, not commoditised reinsurance capacity, when it comes to the giant insurers’ purchasing of reinsurance, according to CEO Peter Zaffino, while the insurer also wants to grow its assets under management in the ILS space.

Swiss Re Corporate Solutions, the large commercial risk specialist unit of the global reinsurance firm, has already settled one parametric insurance claim, after a clients parametric trigger was breached by hurricane Ida’s wind speeds.