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).
A new report from A.M. Best highlights the potential damage that any legislative moves to force retroactive business interruption claims into the insurance and reinsurance industry could cause, saying that as much as 50% of re/insurer capital could be wiped out with just two months worth of claims.
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Peak Re said this morning that its previously announced acquisition of Bermuda-based insurance-linked securities (ILS) asset manager Lutece has now completed and the unit is being rebranded as Peak Capital.
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France headquartered global reinsurance company SCOR said it is pleased with the support investors have shown its latest catastrophe bond, the $200 million Atlas Capital Reinsurance 2020 DAC (Series 2020-1) transaction, while also praising the Irish regulators efficiency and the fact it resulted in a Solvency II first.
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Our fourth Artemis Live video interview features an interesting and wide-ranging discussion with David Flandro, Managing Director, Hyperion X Analytics, a data and technology focused unit of the global Hyperion Insurance Group.
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Claims paid by Japanese domestic insurance firms after the impacts of 2019’s typhoon Faxai, typhoon Hagibis and the heavy rainfall event that closely followed these storms have risen by more than 6%, reaching $10.04 billion, according to the General Insurance Association of Japan (GIAJ).
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The insurance and reinsurance industry is likely facing a larger industry loss from the Covid-19 pandemic than it experienced with the 2001 World Trade Center event, but at the extreme tail-end of probabilities the impact to the market could reach $140 billion, Willis Towers Watson warned today.
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The Covid-19 pandemic is proving to be a catalyst for an expected broad hardening of reinsurance and retrocession markets it seems, with brokers expecting rates to move largely in unison as the financial impact to carriers appears likely to hurt all corners of the market.
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With natural catastrophe reinsurance premiums underwritten having jumped at Swiss Re in the last year, the company has continued to make use of insurance-linked securities (ILS) investor appetite to help it prepare its portfolio for the coming hurricane season.
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Global reinsurance firm Hannover Re continued to expand its activities in the fronting space, with the volume of limit fronted for insurance-linked securities (ILS) investors and funds increasing by 7% during the year.
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The impacts of the Covid-19 coronavirus pandemic will be felt broadly across the global reinsurance marketplace, but in the insurance-linked securities (ILS) market the effects may drive a reduction in available ILS capacity and trapping of collateral, Darren Redhead, CEO of Lancashire Capital Management said today.
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