Coronavirus news

There is a clear role for risk transfer to the capital markets in the provision of capacity to address pandemic related non-damage business interruption risks, according to Europe’s insurance and reinsurance sector watchdog, the European Insurance and Occupational Pensions Authority (EIOPA).

Widespread uncertainty remains around much of the ultimate industry loss from the ongoing Covid-19 pandemic, but if the numbers reach as high as some of the early estimates, it’s likely to be for unexpected reasons, says Tom Johansmeyer, Head of PCS.

RenaissanceRe, the Bermuda headquartered global reinsurance company, has lifted its third-party capital assets under management to a new high of $6.4 billion as of January 1st 2021.

Global reinsurance firm Hannover Re has become the latest to add a significant increase to its estimate of losses from the COVID-19 pandemic, lifting its total reserved for claims related to the coronavirus by roughly 43% to US $1.44 billion.

Argo Group, the Bermuda headquartered international specialty insurance and reinsurance firm, has said that it expects to report $51 million of fourth-quarter catastrophe and COVID-19 pandemic losses, all net of any reinsurance recoveries made.

The arrival of a global pandemic accelerated transformations already taking place across the re/insurance industry, which in turn has created an opportunity for certain insurance-linked securities (ILS) market participants to play a greater role, according to Luca Tres, Partner leading the global life origination and structuring efforts at Securis Investment Partners.

The average return of the insurance-linked securities (ILS) fund market reached 3.51% for full-year 2020, which is the highest figure since 2016 measured by the Eurekahedge ILS Advisers Index.

Analysts at investment bank Berenberg have refined their insurance and reinsurance industry loss estimate for the COVID-19 pandemic, lowering it to an expected range of $40 billion to $60 billion of losses.

A number of insurance-linked securities (ILS) funds have continued to report small increases in losses and reserves set related to business interruption claims from the Covid-19 pandemic, we understand, which continued to weigh on results over the last two months.

A new start-up aims to enhance the economic resilience of the world’s businesses, by filling business interruption coverage gaps using advanced technology such as machine learning and by leveraging insurance-linked securities (ILS) structures to connect this emerging risk class with capital market investors.