Coronavirus news, analysis and information of relevance to the insurance-linked securities (ILS), catastrophe bond and reinsurance capital markets.
The coronavirus Covid-19 outbreak of 2019/20 caused significant disruption and threatened losses across insurance and reinsurance markets, with some ramifications for ILS and cat bond investors and sponsors as well.
The first catastrophe bond rating action due to the Covid-19 coronavirus pandemic is unsurprisingly related to one of the few mortality cat bonds left in the market, Swiss Re's late 2015 Vita Capital VI Limited (Series 2015-1) transaction, which has been put on a negative watch by S&P Global Ratings.The read the full article →
An expected tightening of third-party reinsurance capital from insurance-linked securities (ILS) funds and structures is likely to influence pricing at the upcoming mid-year reinsurance renewals, according to A.M. Best.The rating agency explained that while the reinsurance market is adapting to operating under Covid-19 coronavirus pandemic conditions, the fact ILS capacity read the full article →
The secondary market prices for the Vitality Re series of health insurance-linked securities (ILS) transactions have all been discounted on the potential for the ongoing Covid-19 coronavirus pandemic to drive an elevated level of medical benefit claims through to insurer and sponsor Aetna.As we explained more than a week ago, read the full article →
The April reinsurance renewals saw significant rate increases that offered a chance for insurance-linked securities (ILS) funds to create a much higher returning book of Japanese catastrophe risk for their portfolios, but the results appear to have been uneven.While loss-hit Japanese catastrophe reinsurance towers exposed to wind and flood saw read the full article →
Reinsurance rates rose by as much as 50% at the 1.4 April reinsurance renewals according to Willis Re, but the insurance-linked securities (ILS) market is reported to have deployed slightly less capacity as some ILS funds dealt with redemption requests.The Covid-19 coronavirus pandemic escalated right as the April reinsurance renewals read the full article →
Global reinsurance giant Munich Re has become the first major player to withdraw its stated profit guidance for 2020, as it revealed a "considerable claims burden" caused by losses from the Covid-19 coronavirus pandemic.Munich Re's CEO Joachim Wenning had confidently set out a profit target of €2.8bn for 2020 as read the full article →
Plaintiff attorneys believe there are a number of legal precedents that could mean insurers end up taking more business interruption claims from the Covid-19 coronavirus pandemic than initially thought, which analysts say suggests a rising risk of the impact being greater than anticipated.As we explained last week, legal actions seeking read the full article →
For the property reinsurance marketplace, the impacts of the Covid-19 coronavirus pandemic are expected to be largely driven by macro-economic factors, although some specific contracts could be at-risk of legislative efforts around inclusions, according to Aon.In a client briefing seen by Artemis, Aon explains that property reinsurance contracts would be read the full article →
The rapid growth of mortgage insurance-linked securities (ILS) issuance witnessed over the past five years is expected to slow as a result of uncertainty caused by the Covid-19 coronavirus pandemic, according to analysts at Credit Suisse.Since the introduction of the first deal in 2015, the $298.89 million Bellemeade Re Ltd. read the full article →
Pandemic protection. Is it included, excluded, or even mentioned in a policy or program? Even if it is, is the coverage responsive enough to really help the protection buyer, or should parametric solutions be looked at? If so, how to ensure they are robust?At a time when interest in pandemic read the full article →