Category: The Market

The Florida reinsurance market – 2016

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June 1 is the inception date for most contracts in the bellwether Florida reinsurance market. Florida hurricane exposure is the most significant risk to many reinsurance companies and ILS funds. The the mix of catastrophe risk, demographics...

Rogue trader insurance

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In November 2012, Kweku Adoboli was imprisoned for seven years for a fraud that cost UBS over $2 billion. Rival Swiss bank Credit Suisse is now in the process of placing a bond that will protect it from operational risks like this for...

First quarter pricing update

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US ILW prices have held steady since the beginning of the year and secondary cat bond yields finished the quarter at a similar level to 12 months earlier. But talk of the bottom of the market may be wishful thinking as capital continues...

The case for ILS as a responsible investment

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Responsible investment strategies have experienced rapid growth in recent years. One report estimates that $6.6 trillion (18%) of US domiciled assets are engaged in responsible investment practices. Robert Howie and Alex Bernhardt...

Rates fall more slowly

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Data from brokers shows that property reinsurance rates have continued to fall in 2016 but more slowly than in previous years. At the key January renewal season reinsurance, retrocession and industry loss warranties experienced...

Steady as she goes

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Last month, billionaire investor, Carl Icahn, noted that "unfortunately... the meltdown in high yield is just beginning". While junk bond yields have soared, reinsurance rates have continued to decline. These two opposing forces could...

The alternative twelve days of Christmas

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A seasonal round-up of the big stories of 2015. Happy holidays. On the twelfth day of Christmas, my true love sent to me... Twelve tropical depressions As predicted by Tim Hall and others, Atlantic storm...

Insurers beat forecasts on strong fundamentals

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The glut of reinsurance capital has disrupted parts of the industry, but the insurance industry as a whole continues to post strong results. Nick Martin takes a look at third quarter earnings. Nick Martin is the Co-Manager of the...

Live from Bermuda – Convergence 2015

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In 2017, Bermuda will host the 35th America's cup. The build up to the oldest trophy in international sport is well underway and attracting a new kind of visitor to the island. Jimmy Spithill is a remarkable athlete - he skippered his...

Pricing update – third quarter 2015

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Few reinsurance deals are negotiated in the third quarter, so pricing data is sparse. However, the data from the cat bond and ILW markets indicates little change over the last 12 months. June and July saw some resistance to further...

Car safety – a new paradigm?

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Auto premiums account for close to half of global non-life insurance - but cars are about to get much, much safer. Electric cars will be safer than gasoline ones and driverless cars are likely to be safer still. At a time of excess capital...

Monte Carlo 2015 – live blog

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This week, Monte Carlo isn’t filled with film stars or Formula One drivers but with reinsurance executives from around the world who have congregated for their annual rendez-vous. If you didn’t manage to catch a private jet (or easyJet)...

Monte Carlo analysis

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It’s a business whose prospects have turned for the worse and there is not much we can do about it - Warren Buffett (May 2015) In the run up to the annual reinsurance conference in Monte Carlo, many of the industry's most...

Focus stays on M&A activity during Q2 investor calls

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The flurry of M&A activity in the insurance/reinsurance markets has created a windfall for savvy equity investors as acquirers pay control premiums for their targets. Nick Martin discusses some recent deals and the prospect for more...

Cyber insurance

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Cyber cover is one of the few parts of the insurance market where demand often exceeds supply. As the insurance industry searches for ways to grow, cyber could represent a significant opportunity for both traditional and alternative insurers...

The S curve – the effect of wealth on insurance markets

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The global insurance industry is not fulfilling its potential - many companies and individuals are underinsured for key risks. In less developed countries, losses from natural catastrophes can be almost totally uninsured. Last month,...

Pricing update – second quarter 2015

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The latest pricing data shows that falls in reinsurance rates are slowing. For some structures, returns have improved materially since the beginning of the year but this has not yet been reflected in fund returns. The premiums paid...

What does Google have planned for the insurance industry?

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In 2012, Google launched a price comparison site in the UK and last month it launched a similar service in California - with more states to follow. This week Ellen Carney spoke to InsuranceLinked about what this might mean for the industry. Ellen...

First quarter pricing update

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The latest Industry Loss Warranty prices from Guy Carpenter indicate that US hurricane rates continued to slip in the first quarter, but recent weeks have shown an upward trend. The cat bond market is also showing signs of rate increases....

Cat bond pricing stabilises – for now

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Data from recent deals indicates that catastrophe bond prices have stabilised over the last 12 months. Has the market finally reached the bottom or is it just pausing for breath? Cat bond spreads fell by close to 50% over two...

Live from New York: SIFMA 2015

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The leaders of the global ILS community are braving the New York freeze this week for the annual SIFMA conference. InsuranceLinked will be covering the event in a live blog. Last month was New York's coldest February since 1934....

A turbulent year

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Insurers are anticipating that 2014 will be the most expensive year for the aviation market since 2001 and global air travel is likely to double again by 2030. Could this be an opportunity for the capital markets? Over the last...

Still falling

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The second part of our review of pricing levels looks at metrics from the January 2015 renewal season and finds that rates are still falling for all types of property reinsurance in every region. Last week's article looked at some...

How much?

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A quantitative review of how far cat bond returns have fallen We start the year with a two part review of pricing trends in 2014. This week we look at the ILS market. Next week we will examine what has happened in the reinsurance...