Insurance

American International Group (AIG) has reduced its aggregate reinsurance tower’s limit to $2.05 billion for 2021, down from $2.5 billion in 2020. The 18% reduction in limit for AIG’s aggregate reinsurance tower is not the whole picture though, as the global carrier has also lowered the bottom-end as well, with the aggregate property catastrophe reinsurance…

The insurance-linked securities (ILS) marketplace could put itself at risk of a potentially damaging “credibility gap” if it over promises on environmental, social and governance (ESG) alignment, Synpulse Management Consulting has warned. During the third-quarter of 2020 we teamed up with boutique consulting firm Synpulse Management Consulting to conduct a survey of the maturity of…

The ongoing renegotiation and fine tuning of terms and conditions related to insurance-linked securities (ILS) capital deployment continued at the key January reinsurance renewals, with ILS fund managers gaining some more ground. Terms and conditions had weakened across the reinsurance and ILS market during the prolonged period of softening of market pricing and rates. Since…

The Australian Reinsurance Pool Corporation, which administers Australia’s terrorism insurance scheme, has renewed its retrocessional reinsurance program with $3.475 billion of coverage, with limit secured slightly up on the prior year as it reduced its retention by $25 million. The $3.475 billion retrocessional reinsurance program works in tandem with ARPC’s net assets and a $10…

Catastrophe risk modelling specialist Karen Clark & Company has updated its estimate for insurance and reinsurance market losses from the ongoing winter storm event in the United States, which has been named winter storm Uri, to $18 billion, reflecting the widespread and severe impacts felt. As we explained earlier today, the feeling was that industry…

The insurance and reinsurance industry is likely to experience a “transition year” in 2021, as its recovery from the impacts of the COVID-19 pandemic continues, alongside reducing exposure to it from property and casualty (P&C) contracts, analysts at RBC have explained. The analysts highlight that the threat to insurance and reinsurance markets, including insurance-linked securities…

Counterparty risks are back on the agenda in the insurance and reinsurance market, as part of carriers and regulators heightened concerns over credit risks and creditworthiness, which could serve to make fully-collateralized reinsurance through insurance-linked securities (ILS) even more appealing to ceding companies. Regulators are increasingly raised counterparty credit risks as an issue that insurance…

The Philippines is expecting to have a new private sector catastrophe insurance risk pooling facility in operation this quarter, with the initial launch of the Philippine Catastrophe Insurance Facility (PCIF) expected in Q1 2021. The Philippines Insurance Commission said that the new Philippine Catastrophe Insurance Facility (PCIF) will be the first private sector focused disaster…