reinsurance

The US state of California is already facing flooding after torrential rains triggered by a first atmospheric river event that has driven storms and rainfall in from the Pacific, but forecasters are saying another “brutal” period of wind and rain is expected to begin from Wednesday that could exacerbate the potential insurance market loss situation.

Towards the end of the year, as the challenging January 2023 reinsurance renewal season neared its completion, lower than expected loss estimates related to hurricane Ian eased some concerns related to trapped ILS capital and this assisted in clearing retrocession placements, broker Gallagher Re said today.

There are expected to be an increasing number of partnerships on cyber risk underwriting with insurance-linked securities (ILS) fund managers in 2023, according to cyber modelling specialist CyberCube.

Risk-adjusted non-marine catastrophe retrocession excess-of-loss rates-on-line rose by 50% at the January 2023 renewals, while global property catastrophe reinsurance rates rose 37%, according to international broking group Howden.

There has been a “significant increase” in insured losses from weather-related catastrophe events over the last 20 or so years, with new data from CRESTA showing the total continues to rise into the 2020’s.

Despite a particularly bruising January 2023 reinsurance renewal season that broker Gallagher Re calls tense and late, the market is reported to have resolved many of the issues holding up clearing and the renewals are largely complete.

Bermuda headquartered specialist reinsurer and third-party capital manager RenaissanceRe has now successfully secured $185 million of collateralized retrocessional reinsurance with its new Mona Lisa Re Ltd. (Series 2023-1) catastrophe bond, with the total falling just short of the maximum upsized target.

Wishing all our readers a Happy New Year and a successful 2023 ahead! Here are the ten most popular news articles, week ending January 1st 2023, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our […]

Hong Kong now has its third catastrophe bond, after Chinese domestic insurer PICC Property and Casualty Company Limited sponsored a $32.5 million Great Wall Re Limited deal, to provide it with earthquake reinsurance in China.

Reinsurance capital levels experienced additional downward pressure through the second-half of 2022 according to Guy Carpenter, but the broker also highlighted some new capital inflows in the final month of the year.