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1/1 Renewal “To do” list


With the end of year renewals approaching, Tom Johansmeyer, AVP – reinsurance services, marketing at ISO/Verisk Insurance Solutions, lists what the ILS industry needs to have on its “To do” list.

The January 1, 2016, reinsurance renewal season is in full swing. As the industry continues its annual ritual, the conversations occurring among cedents and markets reflect emerging industry trends, the continuation of prevailing market conditions, and the specific objectives of cedents, reinsurers, and third-party capital providers. We’ve seen five key themes of strategic importance emerge for this renewal season based on our experiences last month at the Rendez-Vous de Septembre and ongoing client and market discussions. As a result, here’s how we see the industry’s “to do” list shaping up for the next three months.

Как закрыть пробелы в защите от катастроф



Финансирование риска стихийных бедствий: “умные” решения для государственного сектора

Природные катастрофы становятся всё более частыми и тяжелыми. Более того, разрыв между экономическими и застрахованными убытками упорно остаётся большим. Особенно остро последствия катастроф ощущаются на развивающихся рынках, которые одновременно являются и серьёзно пострадавшими, и наименее подготовленными. Инструменты, с помощью которых можно сократить этот раз­рыв, используют инновационные решения, которые помогут странам, городам и частным лицам сохранить с трудом завоёванные достижения в области развития даже в условиях наводнений, землетрясений, неблагоприятных погодных условий и других рисков.


Offshore captives ideal for longevity swaps and reinsurance


The establishment of a captive insurance entity for longevity swap transactions in an offshore domicile presents significant cost reductions and a beneficial operating environment for market participants, according to industry experts.

The international longevity risk transfer market has witnessed impressive growth in recent times, underlined by the increase in frequency and size of longevity reinsurance transactions.

Further evidenced is the growing ability of re/insurance and insurance-linked securities (ILS) domiciles to attract the establishment of captive insurers to provide pension schemes with more direct access to reinsurance capacity to hedge their exposures.

Traders expect default on Mexican $100 mln catastrophe bond on Hurricane Patricia


LONDON, Oct 26 (Reuters) – Traders are anticipating a likely default of a $100 million catastrophe bond issued on behalf of the Mexican government, as a result of Hurricane Patricia, they said on Monday.

The default – of either 50 or 100 percent of the bond, depending on the strength of the hurricane – would mark one of the largest catastrophe bond losses for investors since the Japanese earthquake and tsunami of 2011, they added.

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Bermuda welcomes new start-ups to the island


Brad Kading, the chief executive of the Association of Bermuda Insurers and Reinsurers (ABIR), has welcomed the arrival of new players in the Bermuda marketplace that have boosted ABIR member numbers previously reduced through the effects of merger and consolidation.

One of the biggest and new arrivals is Qatar Re. “It’s a huge positive for Bermuda,” said Kading. “They previously had some underwriting capacity on the Island but are now making Bermuda their headquarters and that means hiring additional staff. It’s a good sign that there is a vibrant market in Bermuda.”

That positive sign has been replicated in the alternative capital markets, with Bermuda recently overtaking the Cayman Islands as the domicile of choice for insurance-linked securities (ILS) according to a report by Willis.


Horseshoe launches hedge fund reinsurance platform


Bermuda-headquartered insurance-linked securities (ILS) management, servicing, transformation and fronting specialists Horseshoe Group, has launched a new platform which targets asset managers seeking to establish hedge fund investment oriented reinsurers more simply.

Horseshoe has established a new wholly owned subsidiary named Convergence Risk Services (CRS), which will provide turnkey services to asset managers seeking to enter the reinsurance sector to underwrite longer-tailed risks while actively managing the assets.

Convergence Risk Services will target asset managers and hedge fund managers who want to benefit from the more permanent capital that can be accessed by underwriting reinsurance business while putting the premium float assets to work within their own investment strategies.


New protected ILS / LDI investment launched by Dragon Fire Capital


A new insurance-linked investment product has been launched by global alternative investment manager Dragon Fire Capital. The product sits at the convergence of insurance-linked securities (ILS) and liability-driven investments (LDI), providing tailored relatively uncorrelated returns.

Dragon Fire Capital aims to “innovate at the convergence of ILS and LDI”, with life insurance linked LDI investments an area that the asset manager sees as ripe for the same investors who allocate to the ILS and reinsurance-linked investments space.


Historical EU windstorm losses could be unprecedented today: Swiss Re


Leading reinsurer Swiss Re has brought to light the potential for unprecedented insurance industry losses from three historical European windstorms if they occurred today, underlining that the costs to the insurance and reinsurance industry would be extremely significant.

European windstorms have the scope to be far-reaching, long-lasting and extremely damaging to economies, societies and the risk transfer markets that seek to protect against the peril.

Bermuda Re logo

ABIR president praises Brazilian Government on reinsurance mandate phase-out


Bradley Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers (ABIR) praised the Brazilian Government’s recent announcement to phase out mandates on local reinsurance operations that currently limit the availability of affiliate reinsurance in the country and limit cross border trade with unaffiliated reinsurers.

Kading voiced his approval in a speech delivered  before the Brazilian Center for International Relations (CEBRI),