capital markets

Aon’s CEO Greg Case explained today that the scale of emerging client needs means the broker has to look beyond the traditional insurance and reinsurance market for capital, such as in the recent example of a partnership with an alternative asset manager.

Following the launch of Korra’s Deal Analysis platform, Samir Shah, Co-founder and CEO of Ledger Investing, the parent company of Korra, outlined during an interview with Artemis how the tool aims to bridge the long-standing gap between traditional re/insurance and capital market investors.

BlackRock’s 15th annual survey of the global insurance industry found that insurance capital solutions have become a critical part of how insurers manage their businesses, highlighting that third-party capital partnerships can help allocate risk and capital more effectively, while preserving the capacity to compete, invest in growth, and meet policyholder obligations.

As the collateralized reinsurance sidecar market continues to expand, and momentum builds around the data centre build-out, Jarad Madea, Chief Executive Officer of Howden Capital Markets & Advisory (HCMA) told Artemis that those are key areas where HCMA sees future opportunities as the industry begins to head into 2027.

Rating agency AM Best has indicated in a new report that fronting companies are expected to engage more frequently with the insurance-linked securities (ILS) market to drive capacity diversification using catastrophe bonds, sidecars and collateralized reinsurance structures.

HCI Group, Inc., the insurance holding company, has confirmed that only one of its three reinsurance towers has been impacted after receiving claims from Hurricane Isaias, while the company also expects one of its tokenized reinsurance securities to be affected by losses from the storm too.

Hannover Re’s property and casualty reinsurance subsidiary in Germany anticipates continued strong reinsurance demand at the next rounds of renewals, but notes that rising capacity levels are driving more competition on pricing and terms, while also highlighting insurance-linked securities (ILS) as a complementary offering for clients.

As industry focus grows on designing efficient structures to enable capital to connect with reinsurance risk, Lloyd’s has issued guidance on its expectations for any broker-originated reinsurance structures, which is a strategy that Lloyd’s itself believes is likely to see increasing demand.

Marsh clients are exploring greater use of third-party capital solutions, including sidecars for liability portfolios, as abundant reinsurance capacity and relatively benign catastrophe losses keep market conditions competitive ahead of the January 1 renewals, according to John Doyle, the firm’s President and Chief Executive Officer.

Traditional reinsurance capital remains the driving force and foundational backbone of the global risk market. While the use of alternative capital is increasing, it cannot function in isolation, Thomas Blunck emphasised during Munich Re’s recent Baden-Baden Reinsurance briefing.