Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

Retrocession news

All of our news and analysis on the retrocessional reinsurance marketplace.

Retrocession is effectively reinsurance for reinsurers, so a tertiary layer of risk transfer away from the original risk, if you consider primary, reinsurance and then retrocession.

As reinsurance is insurance for insurers, retrocessional, or retro, protection is reinsurance for reinsurers.

The retrocession reinsurance market has increasingly come to depend on the capital markets and insurance-linked securities (ILS).

As of mid-year 2022, global retrocession capacity has been estimated to be as high as $60bn, around $20bn of which is indemnity based and the rest in other formats.

The alternative capital markets and ILS funds, or investors, play a significant role in global retrocession, as too do instruments such as catastrophe bonds and industry-loss warranties (ILW).

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