Why ILS needs regional as well as line diversity

ORIGINAL PUBLICATION HERE

The storms of 2017 proved wrong the cynics who had doubted the resilience of insurance-linked securities (ILS). Investors did not flee at the frst sight of a loss. Instead, and to the contrary, since the hurricanes, investment has not merely been replenished but has increased substantially. ILS has shown it can support insurers and reinsurers through crises. ILS, conceived after Hurricane Andrew in 1992 and developed after Hurricane Katrina in 2005, has come of age.

That said, ILS will and must continue to develop. The additional funds that have been received for investment must be invested and the historic concentration of funds in Gulf of Mexico risks cannot be sustained. Investors need more diversity of risk.

‘The time limits for ILS regulatory approval in the UK are not competitive enough’

ORIGINAL PUBLICATION HERE

Clive O’Connell, partner and head of insurance and reinsurance at City law rm McCarthy Denning, talks to Insurance Day about the rating outlook, London’s efforts to create an insurance-linked securities hub and the latest developments in the global ILS sector.

Hurricanes will push ILS market to the next stage of evolution

ORIGINAL PUBLICATION BY Clive O’Connell HERE

Despite the losses in the ILS market, the recent storms have alerted a number of new investors to the existence of ILS as an asset class and sparked interest at a time when rates are likely to increase.

Insurance-linked securities (ILS) are at a crossroads. The next few months will show whether, as some in the market have foretold for years, ILS was a fad that would not survive its rst major test – or whether, as others have said, it has become a core part of the future of risk transfer.

ABIR

Kading: ‘My four priorities for Bermuda following the Brexit vote’

ABIRORIGINAL PUBLICATIONS HERE by ABIR or HERE by Insurance Day

In the aftermath of the UK’s vote to leave the EU, Bermuda needs a twin pillar approach to European markets, addressing not only the 27 members of the EU but also the critical UK market

Europe (broadly defined) is the second-most important insurance market to the commercial insurance and reinsurance company members of the Association of Bermuda Insurers and Reinsurers (ABIR) after North America. This is reflected by our market coverage data, employment, capital investment and location of licensed entities in the UK, the EU 27 and Switzerland.

Since our capital and economic contributions in the UK and Europe help to make EU insurance markets more competitive, the EU considered Bermuda in the first wave for an EU Solvency II equivalence assessment.

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Falling empire? London must face up to the changing world

ID_logoORIGINAL PUBLICATION HERE

The market’s obsession with its position in the world does it credit and suggests a real willingness to transform and develop to meet the global challenges of the 21st century.

“If it ain’t broke, don’t fix it” is a reasonable maxim for business, as well as football teams, but the best time to consider a change can often be when things are going well, rather than after they have started to slide. It is in this spirit the London market finds itself gripped by a bout of existential, end-of-empire navel-gazing, questioning its very role in the modern world.

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Insurance Day CEE Special Report: Q&A Coming to terms with Bermuda

ID_logoORIGINAL PUBLICATION HERE (PAGE 7) OR ENTIRE ARTICLE HERE

Kirill Savrassov, senior vice-president and chief executive of Phoenix CRetro Reinsurance Company, discusses the blacklisting of Bermuda by central banks and regulators in the CEE region.

In terms of Phoenix CRetro business in central and eastern Europe and Commonwealth of Independent State region, one important issue keeps raising its head – Bermuda

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

ID_logoORIGINAL PUBLICATION (PAGE 10) HERE. PREVIOUS ARTICLE ON THE TOPIC HERE 

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.

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