systemic risk


Reinsurers won’t be on systemically important (G-SII) list: Kessler & S&P

Reinsurance companies won't be designated as systemically important (G-SII) because they aren't systemic, according to SCOR CEO Dennis Kessler, a view that is also held by rating agency Standard & Poor's. Speaking yesterday at an Insurance Institute of London lecture at Lloyd's, Kessler explained that in his view reinsurance companies do read the full article →

Collateralized retrocession reduces reinsurers systemic risk: S&P

Based on an analysis of extreme loss scenarios, Standard & Poor's says that it does not consider reinsurers' catastrophe risk exposure to be a source of systemic risk and that collateralized retrocession helps to reduce interconnectedness in the sector. The latest report in rating agency S&P's series of Global Reinsurance Highlights, read the full article →

IAIS classes ILS and cat bonds as traditional insurance activities

The International Association of Insurance Supervisors (IAIS) has published its assessment methodology and policy measures for global systemically important insurers, or G-SIIs. As we wrote previously, there had been some uncertainty about how insurance-linked securities and catastrophe bonds would be treated, but this has now been clarified. When the measures were read the full article →

Greenlight Re results show hedge fund reinsurer investment-side risk

Once again, the investment-side risk that comes with the hedge fund backed reinsurer strategy becomes apparent in a hedge fund reinsurance firms results announcement. This time it's Greenlight Re, the Cayman Islands domiciled reinsurer backed by hedge fund manager David Einhorn, which has been hit by investment losses. The last read the full article →

A.M. Best highlight investment-side risk of the hedge fund backed reinsurer

In a news article published yesterday, rating agency A.M. Best highlight the investment-side risk that comes with the hedge fund backed reinsurer strategy which has been becoming more popular in recent years. These reinsurers, backed by large hedge funds, typically try to access the premium income available in the reinsurance read the full article →

Global insurers pose less systemic risk than global banks

The international insurance and reinsurance think-tank The Geneva Association has been one of the more vocal organisations on the topic of systemic riskiness of global insurers and reinsurers. Back in August they voiced concerns about the International Association of Insurance Supervisors (IAIS) work to identify 'globally systemically important insurers' saying read the full article →

EIOPA: ‘Shadow insurance’ needs to be examined

There were some more interesting comments made at the Baden Baden kick-off event held by Guy Carpenter on Sunday. The event featured a number of key industry figures discussing volatility as a concept affecting reinsurers and whether volatility should be looked on as a threat or an opportunity. One of read the full article →

IAIS proposes policy measures for globally systemically important insurers

Our regular readers will be aware that we've been following the work of the International Association of Insurance Supervisors (IAIS) which has been looking at ways to identify and manage what they term G-SII's or Globally Systemically Important Insurers. By insurer you can also read reinsurer and any entities involved read the full article →

Hedge fund backed reinsurers investment assets pose a risk: Fitch Ratings

In an article published by Fitch Ratings their director of insurance Martyn Street says that hedge fund backed reinsurers may find achieving their goals, of "using stable premium flows in lower-risk underwriting business to support higher returns on the companies' asset portfolios" a challenge. As simple as the hedge fund read the full article →

When assessing systemic risk, focus on activities of systemic importance: Geneva Association

The Geneva Association, a leading international insurance think tank for strategically important insurance and risk management issues, has offered its opinion to the International Association of Insurance Supervisors (IAIS) on their work to identify globally systemic insurers and insurance activities. The IAIS have proposed a methodology to identify systemic riskiness read the full article →