Protectionist practices restrict re/insurance market development


Protectionist restrictions on allowing foreign insurance and reinsurance players into local markets are hindering market development, creating barriers to economic growth and risking the build-up of concentrations of risk, according to Insurance Europe.

As certain jurisdictions place protectionist controls on which insurance or reinsurance firms can easily do business there, Insurance Europe explains that this can have a negative effect on policyholders, with costs potentially increasing.


Insurance Day Baden-Baden Special Report: Eastern European reinsurers poised to provide $100m retro capacity in wake of new licence


By Kirill Savrassov, CEO, Phoenix CRetro

The granting of a special license to the Ukrainian insurance company, Brokbusiness, by the National Bank of Ukraine (NBoU) to post collateral abroad represents the culmination of developments in both the global catastrophe reinsurance markets and the local insurance markets in the central and eastern Europe (CEE) and Commonwealth of Independent States (CIS) regions. It is envisaged this will enable regional companies to provide around $100m retrocession capacity to the global insurance market by insurers in the CEE region over the course of the next three to five years.


New reinsurance capital an opportunity for policymakers: ABIR’s Kading


The entry of new and alternative capital into the reinsurance market, as well as the growth of new instruments such as catastrophe bonds and other insurance-linked securities (ILS), provide an opportunity to policymakers as well as re/insurers.

We often write about the opportunity that all this new, third-party investor or alternative sourced, capital presents to those looking for risk transfer, be they insurers, reinsurers or corporates looking for direct disaster risk financing and transfer.


Alternative capital could take 50% or more of global prop cat market


Alternative reinsurance capital and insurance-linked securities (ILS) could command 50% or even more of global property catastrophe reinsurance market limit as the ILS investor base continues to grow, Brett Houghton of Fermat Capital said at a recent event.

Alternative capacity is set to continue growing, both as the ILS investor base continues to broaden and shows increasing interest in the space, Houghton a Managing Principal at specialist catastrophe bond and ILS asset manager Fermat Capital Management LLC commented during a panel discussion at investment bank Macquarie’s 2014 Bermuda in Boston event last week.


Turkish earthquake to grow as an ILS peril as insurance penetration rises


Earthquake insurance penetration in Turkey has risen strongly since the imposition of a law which made having a policy mandatory and has now reached 37%, according to data from the Turkish Insurance Association.

In 2012 a law regarding catastrophe insurance coverage came into force which mandated that in order to access home utilities the homeowner should have a catastrophe insurance policy from the Turkish Catastrophe Insurance Pool (TCIP).