Monte Carlo 2016 – live blog

This week, insurance executives from around the world are hard at work in the Principality of Monaco. If you couldn't make the 60th 'Rendez Vous de Septembre', InsuranceLinked's live blog is the next best thing.

editor Sep 14th, 20166:42 AM

Munich Re: Cyber Insurance premiums will double every three years

editor Sep 14th, 20166:38 AM

Robert Muir-Wood is one of the canniest members of the group of scientists that make a living quantifying the risk of natural disasters. His new book ‘The Cure for Catastrophe’ asserts that we need to overcome human failings to reduce the risks of mother nature. Abernite’s Matthew Grant has reviewed the book here.

editor Sep 13th, 201610:48 AM

Fitch: The slowing rate of price reductions for some classes, indicated at renewal points through 2016 [has] limited significance in terms of improving the near-term profitability of reinsurers.

editor Sep 13th, 20167:05 AM

S&P: ‘We currently expect the sector’s return on capital (which was 8.5% as at year-end 2015) to drop to around 5.5%-7.5% as at both year-end 2016 and 2017. At the end of 2015, the cost of capital for the sector was 6.6% and this is likely to decline to about 6% over 2016 and 2017… More normalized loss and prior-year releases (as already demonstrated by some reinsurers during the first half of 2016) will result in the sector’s profitability dipping below its cost of capital.’

editor Sep 12th, 20169:15 PM

Cory Anger, Global Head of ILS Origination and Structuring, GC Securities: ‘Given the oversupply of available capacity in all forms, the alternative capital market is already signaling a new round of premium rate reductions (at least 5 to 10 percent) based on secondary pricing of outstanding ILS since May 2016.’

editor Sep 12th, 20162:10 PM

Matt Weber, Group CUO, Swiss Re: We expect price erosion to stop in the near future. We are near close to the bottom of this market cycle if we’re not there already. We will know for sure in 12 months time.’

editor Sep 12th, 20162:06 PM

Swiss Re have been explaining the ‘three motivation areas’ of ‘customised reinsurance solutions’.

editor Sep 12th, 20167:53 AM

Torsten Jeworrek, CEO Reinsurance, Munich Re: ‘Hedge fund reinsurers look to place low volatility casualty business and make their profits either from very risky investment strategies or tax advantages. This is not a sustainable business model’.

editor Sep 11th, 201610:59 PM

SCOR Presentation: Rates are ‘very attractive’ for Middle Eastern and South East Asian property cat reinsurance and for Northern European casualty pro-rata business.

editor Sep 11th, 201610:57 PM

SCOR presentation: ‘Return-period losses need to be considered relative to forward earnings, not just to equity’

editor Sep 11th, 201610:56 PM

Victor Peignet, COE SCOR Global P&C:There is a point when you consider the potential destruction of future earnings by a given loss unacceptable. This is driving the thinking process in the leaders of the market. It will lead to a scenario of natural selection when some players disappear one way or another.’

‘A lot of the industry’s problems is the number of players not excess capacity. There are too many mouths to feed and some of them are starving. And the quality of food is also deteriorating.’

editor Sep 11th, 201610:56 PM

Bob De Rose, AM Best:When you strip out favourable reserve development, reinsurers have a combined ratio of around 95.5 percent. Then if you have a normal cat year, a lot of combined ratios would be close to 100 percent and if there are outsized losses combined ratios would be well above 100 percent.’

editor Sep 11th, 201610:49 PM

SCOR presentation: ‘Return-period losses need to be considered relative to forward earnings, not just to equity’

editor Sep 11th, 201610:48 PM

SCOR presentation: Return-period losses need to be considered relative to forward earnings, not just to equity

editor Sep 11th, 201610:46 PM

Victor Peignet, COE SCOR Global P&C:There is a point when you consider the potential destruction of future earnings by a given loss unacceptable. This is driving the thinking process in the leaders of the market. It will lead to a scenario of natural selection when some players disappear one way or another.’

‘A lot of the industry’s problems is the number of players not excess capacity. There are too many mouths to feed and some of them are starving. And the quality of food is also deteriorating.’

editor Sep 11th, 201610:41 PM

Bob De Rose, AM Best:When you strip out favourable reserve development, reinsurers have a combined ratio of around 95.5 percent. Then if you have a normal cat year, a lot of combined ratios would be close to 100 percent and if there are outsized losses combined ratios would be well above 100 percent.’

editor Sep 11th, 201610:37 PM

The Munich Re driverless pod:

The traditional way to get around Monte Carlo…

editor Sep 11th, 201610:27 PM

Something to cheer you up if you are stuck in London this week:

Weather in Monte Carlo:

Weather in London:

Posted: Monday, September 12th, 2016