reinsurance

There has been a “significant increase” in insured losses from weather-related catastrophe events over the last 20 or so years, with new data from CRESTA showing the total continues to rise into the 2020’s.

Despite a particularly bruising January 2023 reinsurance renewal season that broker Gallagher Re calls tense and late, the market is reported to have resolved many of the issues holding up clearing and the renewals are largely complete.

Bermuda headquartered specialist reinsurer and third-party capital manager RenaissanceRe has now successfully secured $185 million of collateralized retrocessional reinsurance with its new Mona Lisa Re Ltd. (Series 2023-1) catastrophe bond, with the total falling just short of the maximum upsized target.

Wishing all our readers a Happy New Year and a successful 2023 ahead! Here are the ten most popular news articles, week ending January 1st 2023, 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 […]

Hong Kong now has its third catastrophe bond, after Chinese domestic insurer PICC Property and Casualty Company Limited sponsored a $32.5 million Great Wall Re Limited deal, to provide it with earthquake reinsurance in China.

Reinsurance capital levels experienced additional downward pressure through the second-half of 2022 according to Guy Carpenter, but the broker also highlighted some new capital inflows in the final month of the year.

In general, reinsurers are achieving north of 35% rate increases for January 1st 2023 property and catastrophe reinsurance renewals, according to Stonybrook Capital, with the company expecting hard market conditions to persist through the new year.

Isosceles Insurance Ltd., the Bermuda-domiciled private insurance-linked securities (ILS) and catastrophe bond platform operated by Marsh McLennan and reinsurance broker Guy Carpenter, has completed another private cat bond note issuance, with an $18.48 million Isosceles Insurance Ltd. (Series 2022-H) deal.

Reinsurance broker Guy Carpenter has claimed that, despite the evident challenges at this reinsurance renewals, “placements were largely completed at client issued structures and pricing,” while the broker also says that reinsurer views at the outset threatened “to erode the core value of the reinsurance product.”

The reinsurance market is renewing much harder at these 1/1 2023 renewals and while the market resets its pricing baselines higher, for property and catastrophe risk in particular, we ask can those baselines be sustained this time around?