alternative risk transfer

The focus of the insurance-linked securities (ILS) market on short-tail catastrophe risks has resulted in a funding gap for longer-tail exposures, but as investor comfort increases, there’s an opportunity for the market to expand its remit.

Global reinsurance firm Munich Re has appointed René Mück as its new Head of Capital Partners, Americas, the division where much of its risk trading, insurance-linked securities (ILS), catastrophe bond and retrocession activities take place.

Allianz Global Corporate & Specialty (AGCS) has appointed Grant Maxwell as the new Global Head of Alternative Risk Transfer within the unit of the global insurance and reinsurance player.

The Vietnam Ministry of Finance and the World Bank in Vietnam, at a workshop on disaster risk finance and insurance, discussed the need for a financial protection strategy to better protect the country and its residents against the financial and social impacts of natural disasters.

Demand for customised risk transfer solutions are increasing within the reinsurance marketplace, according to reinsurance giant Swiss Re. The trend could result in large reinsurers coming under pressure from influential ILS fund managers, as they look to utilise the specialities and features common in the ILS sector.

The latest risk barometer from Allianz, its fifth in the series, reveals that organisations still perceive Business interruption (BI) and supply chain disruption as the main threat to operations, with 51% of respondents citing a fear that natural catastrophes will cause BI losses in 2016.

With interconnectivity increasing, the negative and costly economic impact from business interruption (BI) risks is a growing concern for many firms. Again bringing to light the potential for ILS and alternative risk transfer structures to provide much-needed coverage for BI exposures.

Albert Benchimol, the President and Chief Executive Officer (CEO) of insurer and reinsurer Axis Capital, has said that in reinsurance a minimal amount of scale is required, while the benefits of a hybrid model as well as the ability to access third-party capital are important too.

The world’s largest reinsurance firm Munich Re has reorganised its risk trading, insurance-linked securities (ILS), catastrophe bond and retrocession activities under a new unit named Munich Re Capital Partners, that launched on the 1st July.

International insurance and reinsurance markets, including alternative risk transfer instruments and insurance-linked securities (ILS), have a vital role to play in ensuring basic human rights for people against the world’s catastrophe risks, according to a recent study.