reinsurance

Global reinsurance firm Swiss Re may be required to help pay claims related to typhoon Saola’s impacts in the province of Guangdong, China, as the company believes a parametric scheme that it reinsures could be triggered, executives said in Monte Carlo yesterday.

Speaking today in Monte Carlo, senior executives from Swiss Re’s reinsurance business unit explained that the firm’s Alternative Capital Partners (ACP) unit is an area where “consistency and continuity” are key, while the firm sees “zero conflicts” between its ACP investors and its equity holders.

Broker Guy Carpenter is calling for retrocession buying clients to leverage both traditional and alternative sides of the market, in order to “create competitive tension” at the upcoming January 2024 reinsurance renewals and beyond.

Hannover Re’s CEO says that the reinsurance company sees good opportunities in insurance-linked securities (ILS) and intends to leverage its strong position in that marketplace.

Philipp Rüede, Head of Swiss Re’s Alternative Capital Partners (ACP) unit told us in an interview that the outlook for use of alternative capital and for insurance-linked securities (ILS) as an asset class has “significantly improved”, with expected returns now doubled or tripled in some ILS strategies.

Aeolus Capital Management Ltd., the Bermuda based reinsurance and insurance-linked securities (ILS) investment fund manager, has announced the promotion of long-standing team member Fergus Morrison to Partner at the firm.

Speaking this morning in Monte Carlo executives from global reinsurance firm Hannover Re said that the Vesttoo issues with allegedly fraudulent letters of credit (LOC) is an “eye opener” but not systemic and they see no impact to their own pipeline of business in the insurance-linked securities (ILS) market.

The market for catastrophe risks could double by 2040, with continued growth expected over the coming years, according to SCOR CEO Thierry Léger, but he also cautioned that the industry must work to address the current insurability challenge, especially in relation to climate change.

The global reinsurance sector highlights climate change as the top risk facing their businesses, a new survey from PwC shows, highlighting the need for the industry to innovate on solutions for this exposure.

Signalling an expanding marketplace is ahead, Swiss Re said this morning that the non-life reinsurance sector is expected to grow at a faster rather than GDP over the next decade and that sustainable pricing must persist at the January 2024 renewals.