Monte Carlo Reinsurance Rendez-Vous news

Speaking today in Monte Carlo at the annual reinsurance market Rendez-Vous de Septembre event, Thomas Blunck, a Member of the Board of Management at global reinsurer Munich Re, said he does not expect major capital inflows to either the traditional or alternative sides of the market.

Because the current hard market in reinsurance is largely focused on the shorter-tailed lines of business, like property catastrophe risks, Taoufik Gharib, Senior Director at S&P Global Ratings, said today in Monte Carlo that capital may choose to enter through sidecars or collateralized reinsurance instead of new reinsurer startups.

Speaking this morning at an event in Monte Carlo for the 2023 Reinsurance Rendez-Vous, analysts at Fitch Ratings said that the Vesttoo scandal may push investors in insurance-linked securities (ILS) to focus on the safety of structures and the security of collateral.

Swiss Re, one of the largest global reinsurance companies, said today that the hard market in property catastrophe lines is expected to continue, as a supply-demand disequilibrium persists and profitability remains challenged for the non-life re/insurance segment.

Aon’s Reinsurance Solutions team intends to push reinsurers and ILS funds for rate reductions, in areas of the market where real competition is seen, with the higher-layers of towers likely to receive the most focus for price improvements for clients at the January 2024 renewals.

For global insurance and reinsurance group Everest, the Mt. Logan Re Ltd. third-party capital vehicle is a key strategic priority for the long-term, one that the company intends to grow, COO and Head of Reinsurance Jim Williamson told us.

Alternative reinsurance capital, largely deployed in insurance-linked securities (ILS) formats, remained static at its $100 billion at the mid-point of 2023, according to insurance and reinsurance broker Aon.

Catastrophe bond issuance will reach new heights in 2023, with more than $15 billion of full-year issuance forecast by broker Aon, according to senior executive Mike Van Slooten.

The rebound in capital provided by the insurance-linked securities (ILS) market has become a key supply-side driver in the property catastrophe space, according to Joe Monaghan, Global Growth Leader Reinsurance Solutions at Aon.

In revising its outlook on the global reinsurance sector outlook to ‘improving’ from ‘neutral’ to reflect the sector’s strengthening financial performance into 2024, Fitch Ratings has also cautioned that with capital building again, not least in catastrophe bonds and ILS, a gradual softening of the market can be expected from 2025.