Collateralized reinsurance news

A new special purpose insurer (SPI) has been registered in Bermuda named Fuchsia Re Ltd. and Artemis’ sources suggest the owner, sponsor, or beneficiary is expected to be specialist Lloyd’s focused insurance and reinsurance company Beazley.

Impact Forecasting, the catastrophe risk modelling focused arm of insurance and reinsurance broker Aon, has put the economic impact from this weeks magnitude 7.3 Japanese earthquake into the billions, while likening the event to the 2021 quake that caused more than US $2 billion in insured losses.

Yesterday’s significant earthquake in Japan is likely to increase an already relatively heavy first-quarter of catastrophe and other large losses for the global insurance and reinsurance industry, according to analysts at Bank of America, while Plenum Investments said no impact to the catastrophe bond market is expected.

Rate increases alone are no longer considered sufficient to improve the underwriting results of insurance-linked securities managers and reinsurance firms, according to AM Best, who believes that after consecutive years of heavy catastrophe losses the only answer is continued improvement of the quality of portfolios of risk.

The insurance-linked securities (ILS) sector continues to mature and as it does so new opportunities are presenting themselves, which senior Partners from global law firm Mayer Brown believe could help to stimulate continued market growth in ILS.

Peak Capital, the insurance-linked securities (ILS) investment fund manager operation of Hong Kong based reinsurance firm Peak Re, has made a new hire, adding Derrick Holmes as its new Head of Finance, Operations and Compliance.

While investor appetite for insurance-linked securities (ILS) has been tested by consecutive years of elevated catastrophe losses, the asset class still plays an important role for many allocators and there remains an appetite to invest in new classes of risk, while differentiation is also an important consideration.

Private insurance-linked securities (ILS) fund strategies outperformed in January 2022, as pure catastrophe bond funds absorbed the impact of a loss after the triggering of the Philippines World Bank issued catastrophe bond.

According to recent data from the Bermuda Monetary Authority (BMA), use of insurance-linked securities (ILS) such as catastrophe bonds shrank among Bermuda-based insurance and reinsurance firms between 2019 and 2020, but other often collateralized structures such as ILW’s and quota shares increased in prevalence.

As conversations around cybersecurity and risk management increasingly occur at the board level, insurance-linked securities (ILS) investors and reinsurers should be excited, but must tread quickly and wisely, according to Thomas Nuth, Vice President of Marketing at DeNexus.