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).
According to data from AM Best, just $850 million of catastrophe bonds and other insurance-linked securities (ILS) are held by US insurers in their investment portfolios, a surprising low number given the evident diversification they can offer.
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Cedents are increasingly looking to diversify away from the “rhetoric” of the traditional reinsurance market and this is one of the factors causing Paul Schultz to be very constructive on catastrophe bond market development right now.
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After increasing the size of its reinsurance sidecar transaction in 2021, followed by the issuance of its first catastrophe bond earlier this year, Hong Kong domiciled reinsurer Peak Re aims to further leverage the insurance-linked securities (ILS) market to close the protection gap.
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In working with third-party capital investors, Vantage Risk Ltd., the almost two year’s old Bermuda headquartered insurance and reinsurance company, sees it as important to help mitigate challenges investors have faced with traditional ILS products.
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Leaders at Lockton Re, the reinsurance arm of the global broker, have said they are expecting additional third party capital players to enter the space next year, who may have been watching the market develop from the sidelines in recent years.
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As the insurance-linked securities (ILS) market shifts its thoughts towards the end of year reinsurance renewal negotiations, Tom Johansmeyer, Head of PCS at Verisk believes there could be more pressure on ILS capital to come, especially in retrocession and specialty areas of the market.
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We’ve developed an industry-loss warranty (ILW) pricing data set from information we’ve gathered over the years, as well as recent input from our market sources that helped validate this new Artemis data service.
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The retrocessional reinsurance market is expected to face still-limited capacity at the key January 2023 renewal season, according to Guy Carpenter’s CEO of Global Specialties, James Boyce.
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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.”
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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.
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