Collateralized reinsurance news

Insurance-linked securities (ILS) and catastrophe bonds investments are well placed to weather the current Covid-19 coronavirus pandemic situation, according to specialist reinsurance asset manager Twelve Capital.

There is a chance that reinsurance and retrocession buyers begin to favour fully collateralised protection more highly again, as they become increasingly aware that there are financial and economic risks which of a scale that can threaten traditional re/insurer solvency.

European windstorm Victoria, also known as storm Dennis in the UK, is estimated to have cost the insurance market at least EUR 286 million, according to PERILS AG.

The capital buffers of some of the largest reinsurance companies have been significantly shrunken by the financial market declines seen in the last few weeks because of the Covid-19 coronavirus outbreak, potentially reducing their ability to weather any major catastrophe events that occur.

Insurance and reinsurance market losses from severe storms and flooding that impacted the eastern coastal region of Australia at the beginning of February are now estimated to have reached A$677 million by the Insurance Council of Australia (ICA).

The ongoing Covid-19 coronavirus pandemic is expected to have an impact on future reinsurance renewals, with the volatility it has caused expected to enforce ongoing firming of rates and pricing, according to executives at Schroders.

Legal actions and efforts to enable businesses and also insurers to force through claims related to business interruption appear to be expanding, with potentially significant ramifications for some in the reinsurance and insurance-linked securities (ILS) market should any succeed.

The Lloyd’s of London insurance and reinsurance market fell to an underwriting loss for the third consecutive year, reporting a combined ratio of 102.1% for 2019, while paying gross claims during the year that were higher than in the prior year.

Welcome to the Artemis ILS New York 2020 conference report, which provides insight into some of the debates that took place between speakers and attendees during Artemis’ third event in the city.

Property catastrophe reinsurance is expected to show limited exposure to the ongoing Covid-19 coronavirus pandemic, given in general an outbreak should not be covered under these treaty’s and programs. But rumours abound that attempts to force claims into a range of covers are being seen.