ILS funds news, insurance linked securities or ILS fund news

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.

Loss creep from prior year events has struck the in run-off listed insurance-linked securities (ILS) investment fund strategy, managed by ILS and collateralized reinsurance specialist fund manager Blue Capital Management.

Insurance-linked securities (ILS) in their various forms are “increasingly front and center” when it comes to selecting risk transfer and investment options, broker Willis Towers Watson believes.

Catastrophe bond funds are reporting bumper September returns, in some cases beating their records, as they benefit from the full recovery of hurricane Dorian exposed cat bond valuations.

If the Loma Prieta earthquake that struck California’s Central Coast on October 17th 1989 were to occur again today, the economic impact would be more than six times higher at $38 billion, while insurance and reinsurance carriers would face a more than four times larger bill at $4 billion, RMS estimates.

The life settlements market could experience a double-digit compound gross market annual growth rate (CAGR) over the next decade, according to a forecast from investment management consultancy Conning.

Retrocessional reinsurance focused investment manager Markel CATCo Investment Management has now established specific loss reserves for recent catastrophes hurricane Dorian and typhoon Faxai.

The recent announcement from Pacific Gas and Electricity (PG&E) of an insurance subrogation settlement totalling $11 billion may eventually provide some benefit to ILS funds that were exposed to losses from certain 2017 and 2018 California wildfire events.

An early estimate suggests that Japanese typhoon Hagibis could eventually drive in excess of $10 billion of insurance and reinsurance industry losses, which when added to the other recent typhoon Faxai could see the 2019 typhoon season leaving a larger dent in the industry than 2018’s Jebi and Trami combined.

Nephila Capital has undergone its first full rebrand in its near 22 year history, as the largest manager of catastrophe, weather and climate insurance and reinsurance assets sets itself up for the future.