ILS funds news, insurance linked securities or ILS fund news

Typhoon Hagibis loss impact on insurance, reinsurance and insurance-linked securities (ILS) markets is likely to drive further rate improvements at upcoming renewals, but the market should watch out for potential loss creep, analysts at KBW warn.

U.S. primary insurer Travelers catastrophe and severe weather losses have now eaten 92% of the way through the $1.3 billion retention sitting beneath the insurers new $500 million aggregate reinsurance cover.

Reinsurance, catastrophe, climate and weather risk-linked investment manager Nephila Capital will add a new primary source of risk from another eastern U.S. state, after its managing general agency (MGA) Velocity Risk Underwriters LLC has expanded into New Jersey.

Typhoon Hagibis is estimated as likely to cause an insurance and reinsurance market loss somewhere in a range from $8 billion to as much as $16 billion, by AIR Worldwide.

Reinsurance rate increases are expected to accelerate at the all-important January 2020 contract renewals, as well as and perhaps even more so at April 1st, following the impacts of recent Japanese typhoons and hurricane Dorian this year, A.M. Best says.

Higher reinsurance pricing is seen as essential by Hannover Re and the firm sees a chance of rates increasing in Germany for all-important natural catastrophe risks, something that would be welcomed by the broader market and ILS capital providers.

The Government Superannuation Fund Authority of New Zealand, an autonomous entity that manages the pension assets of state sector employees, said that its allocations to insurance-linked securities (ILS) remain “appropriate to objectives” despite having fallen to a negative return in the last year.

Tremor Technologies Inc., the programmatic insurance and reinsurance risk transfer marketplace provider, has announced its first dedicated sales hire, adding an experienced reinsurance broker from Willis Re.

Stone Ridge Asset Management, the New York based mutual fund manager with a focus on alternative risk premia strategies including reinsurance and insurance-linked securities (ILS), continues to work on the establishment of its new Longtail reinsurance platform.

As the world rapidly advances thanks to technology and the increasing interconnection this brings, the risks faced by the insurance and reinsurance industry are changing fast too, meaning market participants need to help capital providers gain confidence that it understands the exposures it is asking them to underwrite.