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).
Plans are proceeding apace for Australia’s cyclone reinsurance pool, a new government backed facility to enable insurers to access cyclone reinsurance more efficiently.
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For our latest Artemis Live video interview we wanted to understand how the industry loss from Hurricane Ida has been developing and explore the complexities in the reconstruction and recovery that could impact just how high the insurance and reinsurance market loss could rise.
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Catastrophe bond issuance in 2021 has continued to accelerate and with the completion of the latest transaction, the total amount of risk capital issued in pure, Rule 144a syndicated property cat bond transactions has reached $11.1 billion, now surpassing the previous annual record set last year.
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Some insurance-linked securities (ILS) funds have reported their third and in some cases have, or are set to report a fourth negative month of returns in a row, as greater clarity over the magnitude of losses from the European flooding and hurricane Ida continues to emerge.
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Global reinsurance market participants are anticipating broad firming at the upcoming January 2022 renewal season, with retrocession and property catastrophe risks seen as areas in need of price improvements.
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The January 2022 reinsurance renewals are said to be significantly behind schedule so far, as firms hold back on committing capacity in the challenged marketplace, according to Arch Capital’s management team.
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Recent historical natural catastrophe loss trends are driving an increasing focus on the sufficiency of reinsurance and retrocession, global broker Willis Re explained today.
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For our latest Artemis Live video interview we explored the importance of climate risk models in the management of portfolios of reinsurance and insurance-linked securities (ILS), with senior executives from Aeolus Capital Management.
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Analysts from Peel Hunt warn that with reinsurance market appetite for certain property catastrophe risks uncertain, some re/insurers may find themselves retaining more secondary peril exposure and it’s “not obvious that third-party capital will rush in to fill the gap.”
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Markel Corporation has decided to wind down its retrocessional reinsurance focused insurance-linked securities (ILS) fund manager, Lodgepine Capital Management, citing retro market headwinds and a challenging fundraising environment.
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