Insurance

Despite the fact insurance and reinsurance markets become increasingly sophisticated in their use of technology to reach customers and provide enhanced coverage, in North America, perhaps the most advanced economy in insured terms, the natural catastrophe protection gap actually widened by over 7% in 2019. It should perhaps be considered an indictment of the efforts…

Climate change, variability and the expected increases in Atlantic hurricane risk that these factors will drive, is still likely to be compensated for in catastrophe bond and private insurance-linked securities (ILS) coupons, as pricing should rise and consequently returns, in line with the risk, according to ILS manager Twelve Capital. Twelve Capital, the Zurich headquartered…

Catastrophe risk modeller RMS has estimated that total U.S. insurance and reinsurance industry losses from Hurricane Sally will be between $2 billion and $3.5 billion. This estimate, which includes wind, storm surge, and inland flood losses across parts of the Gulf and Florida regions, also includes losses to the National Flood Insurance Program (NFIP) of…

The cyclical nature of the Florida property insurance market is just one of the challenges facing those operating there, with issues around claims litigation, assignment of benefits (AOB) and its exposure to hurricanes and severe weather all making for a marketplace that is difficult to navigate. But the challenges faced in recent years, in particular…

Darren Redhead, chief executive of Lancashire Capital Management, acknowledges that four years in a row of trapped collateral, on the back of major natural catastrophes in 2017, 2018 and 2019 and, latterly, the uncertainty stemming from COVID-related claims, does pose a challenge. “Are we too low as a market?” he asked. “Are we reinsuring people…

Analysts at Morgan Stanley said that pricing momentum across insurance and reinsurance may extend beyond 2021, as a return to profitability remains a priority for reinsurers, while insurance-linked securities (ILS) specialists focus on delivering sustainable returns to investors. Rate momentum in reinsurance is expected to continue catching up with primary insurance and retrocession, as the…

Broking giant Aon said that reinsurance companies included in its Aon’s Reinsurance Aggregate won’t cover their cost of capital in 2020, after loss ratios rose on the COVID-19 pandemic. But the broker also noted that some reinsurance companies have been successful in raising new alternative capital, which of course begs the question of how the…

The alignment inherent in the collateralised reinsurance sidecar vehicles that Swiss Re operates has helped the company to attract fresh ILS capital even during difficult times, the firms CEO Christian Mumenthaler told us. Speaking in a recent Artemis Live video interview, Mumenthaler explained how the world’s largest reinsurer Swiss Re is embracing alternative capital at…

Universal Insurance Holdings, the Florida headquartered and expansive primary insurance carrier, has announced “full retention events” for both hurricane Isaias and hurricane Sally in the third-quarter of 2020, suggesting its reinsurance has been tapped for both storms. Late yesterday the insurer pre-announced catastrophe losses from the two hurricanes, which have impacted its property portfolio during…