Alternative reinsurance capital

Global reinsurance firm Swiss Re is “very active” in creating new products for insurance-linked securities (ILS) investors, according to its CEO, who also sees the need for the capital markets to play a role in protecting against other risks that affect economies.

French reinsurance company SCOR “kicked itself” for not having renewed its mortality catastrophe bonds in the past, the firms new CEO Laurent Rousseau explained today.

Having visited the Lloyd’s insurance and reinsurance market last week and spoken with some of its major players, analysts at peel Hunt concluded that with the renewals approaching talk of rate reductions are now “out of the window.”

As third-party or alternative capital managed continues to grow for global reinsurance firm Swiss Re, the company is keen to stress that this doesn’t mean any changes to its underwriting approach and standards, Philipp Rüede told us.

Reinsurance companies have almost completed an evolution of their business models to enable them to coexist with alternative capital and insurance-linked securities (ILS), according to Moody’s, but the rating agency noted that there are risks to this engagement.

Equity investors focused on the reinsurance sector question whether insurance-linked securities (ILS) deliver cost-of-capital benefits, while also finding it hard to consider reinsurers an ESG appropriate investment, Andrew Ritchie, Partner, Insurance Research at Autonomous Research LLP said today.

Here are the ten most popular news articles, week ending September 12th 2021, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

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.

The global reinsurance market is going to remain boosted by an abundance of capital and capacity, which makes being able to optimise it for your efficient use key, according to Jean-Paul Conoscente, CEO of SCOR Global P&C.