Maturing alternative capital partnerships help reinsurers exceed cost of capital: AM Best
Reinsurers are benefiting from maturing partnerships with alternative capital providers, helping them to consistently exceed their capital costs, a new report from rating agency AM Best has highlighted. For the third consecutive year, global reinsurers have generated returns well above the cost of capital, which AM Best states is due to positive underwriting results that […]
Third-party reinsurance capital projected for 6% growth to $130bn in 2026: AM Best & GC
Third-party capital in reinsurance, deployed through alternative capital vehicles, catastrophe bonds and insurance-linked securities, is projected to grow roughly 6% over the course of this year, to end 2026 around a record $130 billion level, according to the latest data from AM Best and Guy Carpenter. The growth rate would have been higher at more […]
Lockton Re executes ILW covering property cat and cyber risks in a single limit
Reinsurance broker Lockton Re has successfully executed what the firm believes is the first industry-loss warranty (ILW) that combines property catastrophe and cyber risk triggers within a single limit structure for a protection buying client. The innovative structure utilises a trigger from PERILS AG, working with with CyberAcuView as the index provider for cyber risk, […]
Combining liquid cat bonds with private ILS unlocks broader diversification: Doris, Twelve Securis
While catastrophe bonds remain an attractive source of diversifying returns, investors focusing solely on public markets are overlooking a massive portion of the market. According to Cahal Doris, CIO of Private ILS at Twelve Securis, combining liquid cat bonds with selectively sourced private ILS is key to unlocking broader diversification and improving long-term, risk-adjusted returns. […]
GDP exposure to SCS events projected to rise 14% over next 30 years: First Street
Global gross domestic product (GDP) exposure to damaging severe convective storm (SCS) winds is projected to grow 14% over the next 30 years, reaching $20.2 trillion as climate risks continue to reshape underwriting globally, according to a new report by First Street, the climate risk financial modeling provider. A recent report published by the firm […]
Guernsey Financial Services Commission supportive of tokenised ILS
In a recent feedback paper published by the Guernsey Financial Services Commission (GFSC) on tokenisation of assets regulations, the organisation has hailed its support for re/insurers using tokenised ILS contracts, in a move that is expected to drive further innovation within the digital finance space. Building on work delivered through the Commission’s Digital Finance Initiative, […]
ILS, cat bonds & parametrics can help re/insurers innovate to expand nat cat coverage: Fitch
A new report from Fitch Ratings has suggested that insurance-linked securities (ILS), catastrophe bonds, and parametric insurance solutions can help re/insurers innovate in order to balance the conflicting goals of expanding access to affordable natural catastrophe cover, without impairing underwriting principles. In the report, the agency highlights how socioeconomic factors such as wealth creation and […]
Cat bond market grows at 15.5% CAGR since 2021. Strong momentum continues: Swiss Re
The catastrophe bond market continued its strong momentum in 2026 driving another record period of issuance in the first-half of the year and analysis from global reinsurance firm Swiss Re’s Capital Markets division shows that since 2021 the outstanding cat bond market has been expanding at a roughly 15.5% compound annual growth rate. Over the […]
Standardised parametric triggers & portfolio aggregation to drive ILS into digital infrastructure: Oliver Wyman
As the buildout of AI and digital infrastructure continues to expand across the re/insurance industry, driving insurance-linked securities (ILS) into this emerging sector relies heavily on key structural advancements, including the development of standardised parametric triggers and portfolio aggregation mechanisms, according to Michael Moloney of Oliver Wyman. Moloney who serves as Partner, Global Head of […]
Canada’s regulator adds catastrophe bonds as a form of reinsurance for capital credit
The Canadian financial markets regulator, the Office of the Superintendent of Financial Institutions (OSFI), has now added natural catastrophe bonds to its rules on allowable forms of reinsurance that can reduce capital requirements for insurance risk. It’s a move that could help to stimulate more catastrophe bond issuance from Canadian insurance carriers, with the instruments […]