Collateralized reinsurance news

The Lloyd’s insurance and reinsurance market has clear ambitions to broaden its offering to investors seeking insurance-linked returns, with CFO Burkhard Keese saying today that it views the creation of a casualty insurance-linked securities (ILS) market as possible.

At the reinsurance renewals earlier this year, insurance-linked securities (ILS) investment manager LGT ILS Partners did not want to walk away from clients seeking aggregate protection, instead taking steps to make aggregate deals work for the investment manager again.

While Florida’s Citizens Property Insurance Corporation could buy as much as $3.4 billion of new reinsurance and risk transfer in 2022, including catastrophe bonds, the main focus is on delivering value, as the not-for-profit property insurer targets cost savings.

The March 16th magnitude 7.3 Japanese earthquake is expected to cause an insurance and reinsurance industry loss of between US $2 billion and US $4 billion, according to analysis from Verisk Extreme Event Solutions (formerly AIR Worldwide).

The Board of the Texas Windstorm Insurance Association (TWIA) has voted to adopt a multi-model view of risk for 2022, with its newly derived 1-in-100 year probable maximum loss driving a decision to secure a roughly $2.04 billion tower of reinsurance and catastrophe bonds for 2022.

As the US Securities & Exchange Commission (SEC) publishes a new set of proposed rules on climate risk disclosure, it’s becoming increasingly clear regulating for climate risk reporting is going to drive risk management and risk transfer spend, with ramifications and opportunity for insurance, reinsurance and insurance-linked securities (ILS).

The Healthcare of Ontario Pension Plan (HOOPP), a large Canadian institutional retirement fund, has expanded its investment allocation to insurance-linked securities (ILS) by roughly 31% in 2021, taking it to C$721 million (approx. US $575m).

Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, has launched a new transparency initiative, making its transaction data publicly available to demonstrate the traction it has been experiencing.

Despite attempts to reform the Florida property insurance market and the fact newly litigated claims dropped in February 2022, the litigation exposure of P&C insurance carriers in the state remains a concern, according to Wesley Todd, CEO of CaseGlide.

Florida’s Citizens Property Insurance Corporation is debating buying anything from zero to over $3.4 billion of new reinsurance and risk transfer in 2022, with catastrophe bonds an option as usual.