Insurance
Gross to net strategy & reinsurers heavy retro use questioned by cedants
Reinsurance cedants are increasingly concerned by the heavy use of retrocession and the gross to net strategy of some reinsurers, a survey from rating agency Moody’s suggests. The gross to net strategy of some traditional reinsurers also came into question in the survey results, as there was some concern over the reliance on retrocession, especially…
Read MoreILS tells a compelling ESG story: Carey Olsen
Amid the ongoing expansion of the market for sustainable investment, there’s an opportunity for the insurance-linked securities (ILS) sector to show its alignment with environmental, social and governance (ESG) factors, according to law firm Carey Olsen. Intensified by the wide-ranging effects of the ongoing Covid-19 pandemic, heightened awareness of the complex ESG challenges currently faced…
Read MoreBeirut explosion insured loss said $7.5bn by local insurance association
Estimates for the eventual insurance and reinsurance market loss from the devastating explosion that struck the city of Beirut, Lebanon in August are seemingly on the rise, as the President of the local insurance association has said he expects losses will reach $7.5 billion. Source: AP Photo/Hussein Malla It’s more than double his earlier estimate,…
Read MoreHurricane Delta to hit Cat 3+, threaten Mexico’s FONDEN 2020 cat bond
Tropical storm Delta has quickly intensified to become hurricane Delta as it moves through the Caribbean and the hurricane is now expected to reach major status, of Category 3 or higher, as it moves towards a landfall on the central U.S. Gulf Coast at the end of this week. Hurricane Delta became the fastest 25th…
Read MoreSwiss Re’s appetite propelled by “significant rate hardening” in catastrophe risks
In announcing its first-half results this summer, global reinsurance giant Swiss Re explained that it is experiencing and taking advantage of “significant rate hardening” across natural catastrophe exposed business lines. The company has been displaying an increasing appetite for natural catastrophe risks in recent years, leading to the increasing use of third-party capital and instruments…
Read MoreFASB delays insurance standard, focuses on post-implementation reviews
The Financial Accounting Standards Board has voted to defer the effective date of its long-duration insurance contract standard for one year in response to the coronavirus pandemic, as the board takes over the process of conducting post-implementation reviews of some of its recent accounting standards such as revenue recognition, leases and credit losses. Original Article…
Read MoreCatastrophe exposed property saw “massive rate increases” in Q3 – MarketScout
Catastrophe exposed property insurance rates saw “massive rate increases” through the third-quarter of 2020, according to the latest analysis from MarketScout. The continued acceleration of primary catastrophe exposed property insurance rates suggests that the firming of reinsurance rates may also accelerate, in some of the United State’s peak catastrophe zones. After a second-quarter where the…
Read MoreSchroder Secquaero takes proactive approach to fair value under COVID-19
Schroder Secquaero, the specialist insurance-linked securities (ILS) unit of global asset manager Schroders, has taken a proactive approach to fair valuation of its ILS funds under the shadow of the COVID-19 pandemic. COVID-19 and the coronavirus raised a new and significant uncertainty for ILS fund valuation, as there is potential exposure to business interruption claims…
Read MoreStorm Delta forecast to hit hurricane strength on approach to Gulf Coast landfall
The 2020 Atlantic hurricane season is still in its peak and despite a week or more of quieter conditions the tropics have become active again, as tropical storm Delta becomes the 25th named storm of the year and is forecast to become hurricane Delta as it moves across the Gulf of Mexico towards another United…
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