ILS funds news, insurance linked securities or ILS fund news

Insurance and reinsurance company Hiscox Group has expanded its reinsurance and insurance-linked securities (ILS) portfolio at its Hiscox Re & ILS unit so far in 2019, but still believes that the weight of capacity in the market is preventing more widespread price increases from occurring.

Rating agency Fitch warns that a resurgence of alternative capital is to be expected and that this, alongside the growing traditional reinsurance capital base, could begin to pressure rates and dent ambitions for more prolonged market firming.

Assets under management within the reinsurance linked fund strategies managed by AIG’s specialist insurance-linked securities (ILS) unit AlphaCat Managers rose by $200 million during the third-quarter of 2019 to reach $4.3 billion.

Catastrophe risk modelling specialist RMS has now published an estimate for the insurance and reinsurance market impact of recent Japanese typhoon Hagibis, estimating the industry losses at between $7 billion and $11 billion.

Global reinsurance firm Swiss Re is watching for potential opportunities in the retrocession market as this segment reacts to repeated losses and issues with trapped collateral, that the reinsurer believes may attract investors to work more closely with it.

Updated Fri Nov 1st, 9:00am GMT to reflect latest property figures: California’s wildfires continued to burn overnight, with a number of new smaller blazes breaking out and now upwards of 400 structures destroyed, while firefighters made progress in containing the largest Kincade fire.

Oversubscription in reinsurance placements is a sign of an inefficient market, as it suggests that in many cases cedents are unable to optimally price their risk, according to programmatic insurance and reinsurance risk transfer marketplace insurtech Tremor Technologies Inc.

Everest Re is anticipating double-digit rate increases across the retrocessional reinsurance market at the January renewals, which the company believes it is well-positioned to take advantage of, although it aims to be selective.

The CEO of reinsurance firm RenaissanceRe said that his company believes typhoon Faxai could drive as much as a $10 billion industry loss, while the more recent typhoon Hagibis could a roughly 50% larger bigger at approximately $15 billion.

Company specific loss estimates from leading insurance and reinsurance firms for recent typhoon Hagibis appear to confirm that the industry impact of that storm are going to eclipse that of the other recent Japan typhoon Faxai.