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Covid-19 losses to take years to catch up to industry estimates: Willis Re

Currently, bottom-up Covid-19 pandemic loss announcements from insurance and reinsurance companies stand at only around $6 billion, some way short of the wide ranging $30 billion to $100 billion industry loss estimates and broker Willis Re warns it will likely take years to catch up which has ramifications for the read the full article →

FCA testing UK BI wordings. Zurich & RSA highlight reinsurance covers

The UK's Financial Conduct Authority (FCA), one of the key financial market regulators and part of the Bank of England, is to run a test case to help establish the validity of business interruption claims from the Covid-19 pandemic. Numerous major global insurers are involved, including leading players such as AIG, read the full article →

Sidecar sponsors struggling to find sufficient capital support

Reinsurance sidecars as a source of protection are in high-demand right now, as ceding companies look to bring third-party capital support into their business models to help buffer against any potential downside caused by catastrophe losses through the year ahead. Our sources said that demand for reinsurance sidecar capacity is perhaps read the full article →

Volatile ILS fund flows to continue as Covid-19 economic hit persists

Insurance-linked securities (ILS) fund managers and reinsurance companies managing third-party capital are likely to see continuing volatility in terms of investor inflows and outflows, as the broader implications of the Covid-19 pandemic continue to emerge. While an economic recovery is hoped for in the long-run, the hit to global economies and read the full article →

Sidecars & quota shares may face highest Covid-19 claims: A.M. Best

The collateralised reinsurance sidecar market and private quota share transactions entered into by insurance-linked securities (ILS) funds and investors may face the highest impacts from Covid-19 pandemic related claims, A.M. Best has said. We've been raising the subject of sidecar and quota share ILS market and investor exposure to claims from read the full article →

U.S. Treasury opposed to forcing of retroactive COVID-19 BI claims

The United States Treasury has shown in a letter that it is opposed to legislative moves that could force retroactive business interruption claims related to the Covid-19 pandemic onto the insurance and reinsurance industry. The business interruption issues related to the Covid-19 coronavirus pandemic continue to gain air time, with uncertainty read the full article →

Covid-19 a headwind for reinsurance capacity, trapping ILS capital: AIG’s Zaffino

The Covid-19 pandemic is unlike anything else ever encountered by the re/insurance industry and will be a headwind for future reinsurance capacity, according to AIG's Global Chief Operating Officer and CEO of General Insurance Peter Zaffino. With the effects of the Covid-19 coronavirus pandemic sweeping across the insurance, reinsurance and insurance-linked read the full article →

Two-months of retroactive COVID-19 BI claims could wipe out 50% of re/insurer capital

A new report from A.M. Best highlights the potential damage that any legislative moves to force retroactive business interruption claims into the insurance and reinsurance industry could cause, saying that as much as 50% of re/insurer capital could be wiped out with just two months worth of claims. The business interruption read the full article →

Pandemic losses may exceed WTC, at extreme tail reach $140bn: WTW

The insurance and reinsurance industry is likely facing a larger industry loss from the Covid-19 pandemic than it experienced with the 2001 World Trade Center event, but at the extreme tail-end of probabilities the impact to the market could reach $140 billion, Willis Towers Watson warned today. In a report filled read the full article →

Pandemic costs to be substantial, but manageable for Munich Re: CEO Wenning

Speaking at the reinsurance giants annual general meeting this morning, Munich Re CEO Joachim Wenning noted that while the ultimate cost of the Covid-19 pandemic would be "substantial" he expects that for the reinsurer this will be manageable and the company may benefit from opportunities as well. For Munich Re, this read the full article →