reinsurance

The reinsurance market has reached a tipping point, as the three C’s of climate, conflict and capital coalesce to reduce available dedicated reinsurance capital, with this decline unlikely to be replenished before year-end by inflows of alternative or ILS capital, broking group Howden has explained.

In the last year of record to June 30th 2022, an “orderly” catastrophe bond market continued to provide valuable capacity to both new and repeat sponsors, growing the market 8% over that year despite wider global macro headwinds, Aon Securities has said.

Guy Carpenter Chairman David Priebe has said that the current market environment in the reinsurance industry is “one of the most challenging and complex we’ve seen.”

The alternative capital market segment of reinsurance, so insurance-linked securities (ILS), catastrophe bonds and the like, will resume growth on the back of firming reinsurance pricing, analysts at Moody’s believe.

Yesterday, close to 250 attendees joined us for our first insurance-linked securities (ILS) market conference held in London, enjoying insightful talks from our speakers and networking opportunities with ILS players, reinsurance executives and investors.

Aspen Capital Markets, the third-party reinsurance capital management unit of global re/insurer Aspen, has further increased its third-party capital and insurance-linked securities (ILS) assets under management to roughly $1 billion by the middle of 2022.

Alternative capital could be “more relevant than ever” in the global reinsurance industry and has a chance to grow, at a time when reinsurers are looking to manage their volatility more tightly and pulling-back in some quarters such as catastrophe risks, according to S&P Global Ratings.

Insurance-linked investment manager Nephila Capital has lead the re/insurance capacity on an innovative voluntary carbon credit market insurance product that provides cover for third-party negligence and fraud.

Tropical storm Earl intensified to become hurricane Earl over night, as the fifth named Atlantic storm of the season became the second to reach hurricane status and set a path towards the north, with the island of Bermuda now under a tropical storm watch for a relatively close pass.

Recent high levels of issuance in the catastrophe bond market are expected to continue, with a busy second-half of 2022 forecast and that momentum expected to carry into 2023, according to Aon Securities CEO Paul Schultz.