capital markets

The catastrophe bond sector has become an integral part of the broader risk transfer industry, and according to Cedric Drui, CFA, Managing Director at Neuberger Berman, the cat bond market will see continued growth for years to come.

Tremor Technologies, the insurtech with a technology-based programmatic insurance and reinsurance risk transfer marketplace, has experienced particularly strong growth in 2021, expanding the amount of risk transferred through its marketplace with $175 million of premium transacted this year.

Capacity to support aggregate retrocessional reinsurance renewals at 1/1 is “extremely scarce” according to analysts at KBW, who after a second day of meetings with Bermudian companies concluded that significant rate increases are going to be required for this segment of the market.

Global reinsurance giant Munich Re has said that reinsurance alone cannot absorb the systemic risk that climate change brings, citing the need for public private partnerships and government intervention.

Optimism over reinsurance renewal rate increases is said to be rising, as the market deals with a significantly delayed renewal timeline, for which a lack of aggregate retrocession capacity and trapped insurance-linked securities (ILS) capital are two of the drivers.

The California Earthquake Authority’s (CEA) reinsurance and catastrophe bond based risk transfer program shrank slightly by December 1st 2021, but with forecasts suggesting it could need to buy as much as $6 billion more in limit over just the next 5 years, further growth seems likely.

A new report details an opportunity to create insurance solutions to underpin the nature-based carbon market and suggests that securitizing them would be a way to unlock new capital, while feeding investors appetites for insurance-linked investments and an environmental, social and governance (ESG) appropriate asset.

Voussoir Re Ltd., the Bermuda-based collateralized reinsurance sidecar style special purpose insurance (SPI) vehicle of Arch Capital, has issued new Series 2021-9 shares, showing the sponsor continuing to use this structure to partner with capital market investors.

The global reinsurance market outlook remains stable, thanks to positive pricing momentum, improved market discipline and rising demand, according to rating agency AM Best.

William Spiegel, Executive Group Chairman of Randall & Quilter (R&Q) Investment Holdings, said this morning that insurance-linked securities (ILS) markets are a target for the firms growing program management business.