Industry loss warranty news

K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, has raised its conviction on investing into insurance-linked securities (ILS) and reinsurance investments to “strongly overweight” saying it anticipates firm pricing conditions and despite some spread tightening in catastrophe bonds the yields remain attractive.

The Texas Windstorm Insurance Association (TWIA) expects to buy more reinsurance and risk transfer in 2024, as the not-for-profit wind and hail insurer of last resort for the state forecasts a significant increase in exposure, alongside a continued hard reinsurance market.

The ability to customise industry-loss warranties (ILW’s) is seen as a key trait in the reinsurance-linked asset that assists in the portfolio construction process, but demand for ILW protection has fallen slightly among reinsurers, according to the CEO of the City National Rochdale Select Strategies Fund.

In finalising the insurance and reinsurance industry loss estimate for Japanese typhoon Nanmadol, which struck the country in September 2022, catastrophe loss data aggregator PERILS AG has lowered the total to JPY 125.9 billion, while also saying that its data is increasingly being used in Japanese ILW loss triggers.

In the wake of Tom Johansmeyer, the former Head of Verisk unit PCS, joining the Ardonagh Group reinsurance broking division Inver Re in Bermuda, the company has now launched an integrated global index practice and sees an advantage in leveraging his experience in ILW’s.

Swiss-headquartered fintech Cerchia said today that the first risk transfer arrangement has now been traded on its capital markets focused direct risk transfer platform, with a buyer and seller coming together to trade a $100bn PCS trigger Florida wind industry-loss arrangement.

Analysing the insurance-linked securities (ILS) market outlook for the third-quarter of 2023, K2 Advisors, the hedge fund focused investment management unit of Franklin Templeton, believes spreads could tighten further, especially in catastrophe bonds, but it remains constructive on ILS and has now signalled an overweight view on industry-loss warranties (ILW’s).

Verisk, the insurance and reinsurance market claims, data and technology focused service provider, has named two new leadership appointments within its PCS (Property Claim Services) business unit, in the wake of the departure of former PCS leader Tom Johansmeyer.

The Texas Windstorm Insurance Association (TWIA) has now secured the reinsurance and risk transfer it wanted for 2023, with its tower placed to the targeted $4.508 billion and $1.2 billion of that provided by catastrophe bonds.

Inver Re, the Ardonagh Group’s reinsurance broking arm, has made a key hire in taking well-known industry executive Tom Johansmeyer from Verisk’s PCS unit, to become the brokers’ new Global Head of Index products, Artemis has learned.