Coronavirus news

Our latest Artemis Live video interview features James Vickers, Chairman of Willis Re International, part of the global reinsurance broking unit of Willis Towers Watson, who joined us to discuss reinsurance market performance and capital trends.

Elementum Advisors, LLC, the insurance-linked securities (ILS) fund management and collateralised reinsurance underwriter, has announced the promotion of Lynette Pirilla Walter to Chief Legal Officer of the asset manager and the hiring of John Drnek of RenaissanceRe’s as General Counsel for its Bermuda operation.

The majority of insurance-linked securities (ILS) funds have reported a negative return for February 2021 after the impacts of the US winter storm and Texas freeze, according to the latest report from the Eurekahedge ILS Advisers Index.

Losses and IBNR reserves related to the COVID-19 coronavirus pandemic reported by major insurance and reinsurance companies have risen significantly during the first-quarter of 2021, with the total pandemic loss reported now nearing $38 billion, having risen by 21% during reporting for the final-quarter results of 2020.

Changes to Hong Kong’s insurance and reinsurance market regulation came into effect on March 29th, including the new regulatory regime for insurance-linked securities (ILS) business.

The Lloyd’s of London insurance and reinsurance market reported a £0.9bn loss for 2020 after significant impacts from the COVID-19 pandemic dented performance, despite significant reinsurance recoveries.

The fact cedents allowed insurance-linked securities (ILS) capital to be rolled over into reinsurance renewals rather than trapping it for potential losses from the pandemic, for the ILS market “amounts to kicking the can down the road for COVID-19-related losses,” according to AM Best.

At the recent January 1st 2021 reinsurance renewals, the expectations for significant impairment to some insurance-linked securities (ILS) strategies because of trapped collateral due to exposure to the COVID-19 pandemic proved overblown.

Following a consultation period, Hong Kong’s new insurance-linked securities (ILS) rules have been amended to reduce the minimum investment size required in an issuance down from US $1 million to US $250,000, while guidance on what constitutes a qualified investor has also been tightened.

The average return of the insurance-linked securities (ILS) fund market was only 0.13% in January 2021, as pure catastrophe bond funds outpaced those invested in private ILS, according to the Eurekahedge ILS Advisers Index.