Our Board Member has been interviewed by Aon Benfield


An Interview with Brad Adderley, Partner at Appleby (Bermuda) Limited to Aon Benfield

Brad Adderley is a partner in the corporate department of Appleby’s Bermuda office and has been a member of the insurance team for 20 years

1. Please provide an overview of Appleby and your role within the firm

Appleby is one of the world’s largest providers of offshore legal advice and services. The Group has offices in the key offshore jurisdictions of Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, Hong Kong, Isle of Man, Jersey, Mauritius, and the Seychelles. Appleby has been ranked as one of the world’s largest providers of offshore legal services by number of lawyers in The Lawyer’s 2015 Offshore Survey.


Aon ILS Indices outperform all fixed-income benchmarks in 2015


In 2015 the Aon ILS Indices, which track the performance of investment baskets of catastrophe bonds, all outperformed a number of comparable fixed income benchmarks, as well as beating the S&P 500 Index, the latest report from Aon Securities shows.

No matter how much reinsurance rates have declined and catastrophe bond pricing has dropped an investment in ILS and cat bonds continues to outperform comparable benchmarks, often with lower volatility as well.


Disaster insurers tap under-protected emerging markets


Davos, Switzerland — When an April 2015 earthquake ravaged Nepal, killing 9,000 people and destroying half a million homes, insurers say the money paid out to victims amounted to less than a tenth of that received by Americans hit by winter snowstorms earlier in the year.

The figures reveal a huge potential market yet to be tapped in the developing and emerging world, major insurers said at an annual four-day gathering of billionaires and the political and business elite in Davos, Switzerland, which wrapped up Saturday.

Opportunity for ILS to mitigate BI losses from natural catastrophes


The latest risk barometer from Allianz, its fifth in the series, reveals that organisations still perceive Business interruption (BI) and supply chain disruption as the main threat to operations, with 51% of respondents citing a fear that natural catastrophes will cause BI losses in 2016.

“Business interruption (incl. supply chain disruption) ranks as the top peril in the Allianz Risk Barometer for the fourth year in succession with 38% of responses rating this as one of the three most important risks for companies,” explains the report.


ILS market grows 17% on re/insurer interest, investor confidence: WCMA


Total non-life insurance-linked securities (ILS) capital increased by 17% over the course of 2015 to reach $70 billion at the end of the year, thanks to increasing interest from insurance and reinsurance sponsors and growing investor confidence, according to WCMA.

The ILS market “hit new heights in 2015” according to the latest report from Willis Capital Markets & Advisory (WCMA), the capital markets and investment banking unit of global advisory, insurance and reinsurance broking firm Willis Towers Watson.


Canadian territory looks at catastrophe & weather risk transfer options


Canadian province Manitoba has established a task force to explore the use of catastrophe insurance solutions in light of a rise in adverse weather events negatively impacting its agricultural sector, according to a recently published report.

“Manitoba’s agricultural producers have faced serious challenges in recent years, brought on by the changing climate. There have been more frequent periods of excess moisture that have taken previously fertile land out of production, as well as flooding disasters, which brought an increased magnitude of disruption to agricultural production,” explains the Agriculture Risk Management Review Task Force Report.


Munich Re cites “valuable” capital market risk transfer with sidecar & cat bond


Global reinsurance company Munich Re said today that it has increased its use of the capital markets as a source of efficient capital for risk transfer and retrocession, citing the coverage provided by its Eden Re II sidecar renewal and recent Queen Street cat bond as “valuable”.

“The current market environment made both transactions attractive for investors, which at the same time made the risk transfer valuable for us,” Munich Re board member Thomas Blunck explained.


Insured catastrophe losses 31% below average in 2015: Aon Benfield


2015’s catastrophe, natural disaster and severe weather events around the globe resulted in insurance and reinsurance industry losses of $35 billion, which is 31% below the 15 year average of $51 billion and the lowest annual insured loss since 2009.

The latest annual catastrophe report from Impact Forecasting, reinsurance broker Aon Benfield’s catastrophe modelling unit, reveals that 300 separate natural disaster events struck in 2015, which is higher than the 15 year average of 269 events.