Monte Carlo Reinsurance Rendez-Vous news

There is more optimising on the potential for retrocession capacity to be more available towards the end of the year for the January 2024 renewals, with conditions having improved and some fund-raising possible, Lara Mowery of Guy Carpenter said last week.

Right now and for the medium-term, in the world of insurance-linked securities (ILS), “liquidity is king”, according to Erik Manning, Director at BMS Re in Bermuda, who believes ILS managers need to focus on finding more liquid ILS investment structures to offer to their clients.

Analysts at S&P Global Ratings explained in Monte Carlo this week that the reinsurance industry remains in a hard market, especially in property catastrophe lines of business, with the balance of power sitting with reinsurers and more demand for protection expected to come, providing new opportunities.

While the catastrophe bond space is expected to continue growing, due to its track record and performance, Stephan Ruoff, Global Head of Schroders Capital ILS is also bullish on private ILS transactions, although acknowledges that investors will want to see a period of improved returns from this segment of the ILS market.

Global reinsurer Hannover Re said that it expects P&C reinsurance pricing to rise again, while terms and conditions are expected to improve further, at the upcoming January 2024 renewals.

Tanguy Touffut, the CEO & Co-founder of parametric insurance and risk transfer specialist Descartes Underwriting, expects strong growth for the parametric marketplace, while the role of insurance-linked securities (ILS) investors in backing parametric risk transfer structures is expected to increase as well.

Speaking with Artemis in Monte Carlo this morning at the annual Rendez-Vous de Septembre event, Trevor Carvey, CEO of Conduit Re, explained that the reinsurer plans to continue its work in the catastrophe bond space.

Given the strong growth of the catastrophe bond market over the last year and the fact market conditions and investor preferences favour the structure, if these trends continue, Fitch Ratings Senior Director Brian Schneider said he expects cat bonds will become the largest segment of the alternative reinsurance capital market.

This year feels like a watershed moment for the cyber insurance-linked securities (ILS) market, with tangible advances in use of ILS capital to support cyber risk underwriting, while cyber models have reached a level of maturity that promises there is much more to come, Brittany Baker of CyberCube told Artemis.

The insurance-linked securities (ILS) market’s ability to rebound from recent historical losses, resume its growth trajectory and deliver what investors have been looking for, is a true testament to its resiliency and overall value proposition to all stakeholders, Aon has said.