reinsurance

For reinsurance capital, the rules of engagement in Florida’s property insurance marketplace have been redefined thanks to the wave of significant legislative reforms that have been enacted, according to rating agency Demotech.

All of the changes enacted at the latest Florida Special Session will have a positive impact on the region’s property market, but the benefits will need to be proved before reinsurers and insurance-linked securities (ILS) markets really jump back in, according to experts from across the space.

Having completed its new Gateway Re Ltd. (Series 2023-1) catastrophe bond transaction at a 78% upsized $355 million, coastal property insurance underwriting group SageSure, its SureChoice Underwriters Reciprocal Exchange (SURE) and facilitator Swiss Re have all hailed the fact this is the largest cat bond deal since hurricane Ian struck.

Reinsurance broker Gallagher Re has appointed industry-loss warranty (ILW) and retrocession broker Alex McManus to lead its index-based capabilities in Bermuda.

Notable in the wake of Hurricane Irma in 2017, trapped collateral is an ongoing issue for the insurance-linked securities (ILS) space. But through tools available within the capital markets, funds can manage extensions and put an end to non-performing assets.

The insurance and reinsurance industry loss estimate for the European windstorm series that struck in February of 2022 has been raised again by another 3% to now be finalised at EUR 3.851 billion by data aggregator PERILS AG.

Direct-to-consumer and fast-growing insurtech company Kin Insurance has revealed that it ceded around 97% of its gross losses from hurricanes Ian and Nicole in 2022 to its reinsurance capital partners.

New Zealand’s state-owned residential property disaster insurance entity, Toka Tū Ake EQC (formerly known as the Earthquake Commission), does not expect the recent floods and cyclone will trigger its reinsurance, but as it thinks about how to navigate more challenging renewals this year, the EQC is more closely considering catastrophe bonds.

Catastrophe bond investment funds structured in the UCITS format have reported a record start to the year, with the average return across the leading UCITS cat bond funds reaching 1.77% so far in 2023.

In order for capital to flow more meaningfully back into insurance-linked securities (ILS), John Dacey, the CFO of global reinsurance firm Swiss Re, said that the industry needs to better address investor concerns over climate change impacts to nat cat risk.