reinsurance

The insurance industry loss from the wildfires that impacted the Municipality of Jasper and Jasper National Park in Alberta, Canada this summer is estimated to have surpassed $880 million, according to Catastrophe Indices and Quantification Inc. (CatIQ).

Unless there are “substantial” losses to insurance-linked securities (ILS) from catastrophe events in the second-half of 2024, Fitch Ratings said it expects “continued strong supply growth in the alternative reinsurance capital market into 2025.”

The recent and first ever ‘megaquake’ warning issued by authorities in Japan has heightened the perception of the peril’s risk and even though the warning was eventually lifted, it is seen as a factor that could be supportive of reinsurance pricing for that country, by analysts at J.P. Morgan.

Strong and still rising demand for reinsurance protection is expected to be a ballast for underwriting profitability for the sector, even as pricing comes off its recent peaks and the market begins to soften somewhat, analysts at investment bank Berenberg have said.

There is now just one week to go until our catastrophe bond and insurance-linked securities (ILS) market conference in London on Tuesday September 3rd. Tickets for Artemis London 2024 are selling fast, so please register now if you want to attend.

Dr. Nigel Clarke, the Minister of Finance of Jamaica and the driver of that country’s multi-layered approach to disaster risk financing that includes the first catastrophe bond for a small-island state has been proposed to become a Deputy Managing Director of the International Monetary Fund (IMF).

Here are the ten most popular news articles, week ending August 25th 2024, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

Concerns over how a cyber catastrophe loss event could manifest mean many insurance-linked securities (ILS) investors remain cautious when it comes to considering allocating to cyber catastrophe bonds and reinsurance, but interest continues to rise and broker Lockton Re expects more efficient capital will flow to cyber risks in time.

Over the last couple of years the amount of capital trapped in collateralized reinsurance, retrocession and other insurance-linked securities (ILS) has declined significantly, which makes for a much larger and more impactful ILS capital market than you might think, AM Best rightly points out.

As the busy reinsurance conferencing season approaches, kicked off in September by our Artemis London 2024 ILS market event and soon after the Monte Carlo Reinsurance Rendezvous, it’s perhaps no surprise that talk of the reinsurance market cycle re-emerges.