Up to $20bn in new capacity needed for Jan 2023 reinsurance renewals: JMP
A true reinsurance hard market may be around the corner, particularly in US property lines such as coastal wind exposed towers, with inflation a key driver and expected to result in a need for as much as $20 billion of new capacity to soak up demand at the renewals. Already some of the biggest US […]
Typhoon Nanmadol seen as Japanese industry loss threat
Update: See our more recent article on typhoon Nanmadol. While tropical storm Fiona may be concerning some, given the uncertainty in its eventual path, on the other side of the globe typhoon Nanmadol is seen as a relatively significant Japanese loss threat by insurance and reinsurance market interests. Typhoon Nanmadol is set to strike southwest Japan with […]
ILS continues to succeed with stable capital and expanded cat bond market: Aon
Despite industry headwinds, the insurance-linked securities (ILS) market continues to succeed, according to Aon’s Alternative Capital: Growing Markets report, which analyses trends in the sector during the 12-month period through June 30, 2022 The report includes commentary and insights on the catastrophe bond market, transaction activity, ILS-related markets – such as Industry Loss Warranties (ILW), sidecars and […]
Data shows industry loss warranty price trends. AM Best says ILW capacity rising
We’ve developed an industry-loss warranty (ILW) pricing data set from information we’ve gathered over the years, as well as recent input from our market sources that helped validate this new Artemis data service. For the moment, we have pricing on three specific triggers for industry-loss warranties (ILW’s), $50bn industry loss attachments for US earthquake, US wind […]
Alternative capital market poised to resume growth trend: Moody’s
A positive pricing momentum for reinsurance will help alternative capital – capital from investors in the form of collateralized reinsurance, catastrophe bonds and reinsurance sidecars – to restart growth after five years of poor returns, according to a recent Moody’s report. Over the past 15 years, alternative capital has grown from approximately $22bn at year-end […]
Alternative reinsurance capital could be more relevant than ever: S&P
Alternative capital could be “more relevant than ever” in the global reinsurance industry and has a chance to grow, at a time when reinsurers are looking to manage their volatility more tightly and pulling-back in some quarters such as catastrophe risks, according to S&P Global Ratings. In updating its analysis of the global reinsurance sector, […]
Reinsurance capital shrinks, ILS market share grows to 15%: Gallagher Re
Alternative reinsurance capital, so the capacity deployed through insurance-linked securities (ILS) structures including catastrophe bonds, has remained relatively flat since 2021, but with traditional reinsurance capital having shrunk, the ILS market’s share has increased, according to Gallagher Re. In a report released today, broker Gallagher Re highlights the decline in traditional reinsurance market capital, as […]
TehranRe sets up with Insurance-Linked Securities’ ambitions
A new reinsurer has been established in Iran’s capital called Tehran Reinsurance Company, which launches with around USD 20 million of capital, and which has ambitions to offer services for a local insurance-linked securities (ILS) market. After Iranian regulators approved the launch of TehranRe in March 2021, the firm reached an agreement in principal for […]
Reinsurers divided on natural catastrophe risk: S&P
S&P Global Ratings has said that global reinsurers are parting ways on natural catastrophe risk, with half growing their exposure in this area over the course of the year. Meanwhile, the S&P said that the remainder are taking a more cautious and defensive stance by reducing their exposure. The firm said that this divergence in […]
Santam passes most of $257m flood loss to reinsurers
South African insurer Santam has reported its results for the first six months of 2022, which include a gross exposure of R4.4 billion (USD 257 million) to flooding in the KwaZulu-Natal province. However, the company’s net impact from the floods was limited to R566 million (USD 33 million) thanks to its reinsurance program, meaning reinsurers […]