ILS can increase efficiencies & reduce costs for reinsurers: Aon


Being able to successfully attract and deploy alternative reinsurance capital can provide reinsurers with some potentially invaluable cost reductions and broader market efficiencies, according to global reinsurance broker Aon Benfield.

The persistent inflow of sophisticated, and efficient third-party reinsurance capital is contributing to the evolution of the global reinsurance industry, which, has seen a host of companies look at adopting new, innovative, and more cost-efficient business models.

“A structural shift in the way capital is raised and deployed to mitigate insurance risk is underway,” says Aon, in its latest Aon Benfield Aggregate report (ABA).


Innovation, expansion, diversification key to ILS growth: Industry leaders


In order for the insurance-linked securities (ILS) market to continue to grow at the pace it’s been accustomed to, it will need to expand and diversify into new peril regions via innovation, according to industry leaders.

The ILS market’s focus on property catastrophe business is likely to continue expanding the sector, but at a pace more in line with the traditional reinsurance and insurance industry.

For the marketplace to continue growing at the pace it’s become accustomed to, diversification, innovation and expansion into new peril regions will be key, according to Paul Schultz, Chief Executive Officer (CEO) of Aon Securities, and Jean-Louis Monnier, Global Head of ILS Structuring at reinsurer Swiss Re.

South Korean pension fund looks to catastrophe bonds


The benefits of investing in insurance-linked securities (ILS) are spreading in Asia, with South Korea the latest country where pension funds are learning to appreciate the low-correlated and relatively stable returns possible from catastrophe bonds.

According to an article from Pulse News, the South Korea’s Public Officials Benefit Association, the pension fund manager for government workers pensions, as well as with other institutional investors such as the South Korea pension service, one of the largest public pensions in the world, are ready to allocate to investments in catastrophe bonds.

Pulse reports that the investors are ready to allocate 40 billion won (around US$36.6 million) in catastrophe bonds, as they search for higher returning asset classes amid the prolonged low-interest rate environment.


ABILS pentru societatile de asigurare din Europa Centrala si de Est in calitate de potentiali investitori


by Kirill SAVRASSOV, Senior Vice-President & CEO Phoenix CRetro Reinsurance Company

Asa cum s-a mentionat in cadrul unui articol recent din industrie, “in timp ce in ultimii ani principala prioritate a investitorilor a fost identificarea de randament, anul trecut prioritatea a devenit protejarea capitalului. Un instrument care promite sa livreze atat venituri financiare, cat si decorelarea fata de pietele financiare mai largi este titlul de valoare legat de asigurari (ILS – insuranc- linked securities)”.