Here’s your daily Reinsurance News for Monday 12th September 2016:
It’s day two of the 2016 Monte Carlo Reinsurance Rendez-vous, the 60th anniversary of the reinsurance, insurance and more recently insurance-linked securities (ILS) meeting in the south of France.
Here’s all the latest coverage from our sister publication Artemis around the 2016 Monte Carlo Reinsurance Rendez-vous.
The global insurance and reinsurance industry remains incredibly competitive as traditional and alternative capital continues to enter the space, adding pressure to rates, suggesting that market participants must do more in order to reduce costs, and ultimately increase efficiency, according to PwC.
A $100 billion catastrophe loss would not cause a significant hardening of reinsurance rates given the industry’s capacity to absorb major losses and strong appetite from the capital markets, thinks John Seo, Co-Founder and Managing Principal at cat bond and ILS specialist investment manager Fermat Capital Management LLC.
Over the next few years reinsurance giant Munich Re does not expect any significant growth in insurance or reinsurance demand, the company’s Board said today, which suggests that with the excess capital sloshing around the market pressure will not ease any time soon.
The largest insurance-linked securities (ILS) fund managers are actively raising capital at this time, which increasingly will be diverted to collateralised reinsurance as focus on that product grows, according to broker Aon Benfield.
Market conditions are slightly worse in the global reinsurance market compared to this time last year, according to Willis Re CEO John Cavanagh, however the worsening of market pricing and conditions has not materially changed in that time, providing hope that things are stabilising.
Below is the rest of your daily reinsurance news.
The abundance of traditional and alternative reinsurance capital that continues to enter the marketplace and drive down pricing, is a threat to the profitability of Bermudian reinsurers, says Fitch Ratings.
Reinsurance broker Aon Benfield has said that overall reinsurance capital increased by 4% in the first-half of 2016, to an estimated $585 billion.
Reinsurers appear to be resisting shorter-term aggressive buying strategies as primary players enter a period of consolidation, according to executives at Guy Carpenter.
Investment oriented reinsurer Greenlight Re is looking to expand its capabilities in Asia and Europe, after entering into an agreement with Kattan Associates Limited.
Reinsurance giant Munich has said that reinsurance pricing continues to fall at a slower pace than previous years, according to reports from the industry.
Barbican Insurance Group has implemented a new leadership structure for Syndicate 1955. David Slade has been named divisional head of property; Olivier Decombes divisional head of energy, power & utilities; and Andy Caldwell as divisional head of specialty.
RMS has announced the launch of a New Exposure Management Solution on its RMS(one) Platform, available to all insurance and reinsurance firms and brokers.
Arab Insurance Group (Arig) has announced several changes to its management team, including the retirement of Andreas Weidlich, General Manager, Reinsurance. Nagarajan Kannan, General Manager, Finance & Admin, and Salah Al Maraj, Assistant General Manager, Reinsurance, have also retired.
Reinsurer Swiss Re has said that technology is driving the long-term transformation of the insurance industry, and that price levels are expected to stabilise.
Global ratings agency Fitch Ratings has said that smaller reinsurers could be challenged with extra pressures in the current market environment, as reduced profits and low investment returns look set to continue.
In an effort to expand its presence in the North American market, BMS Re has announced the acquisition of Advocate Reinsurance Partners, although terms of the transaction are yet to be disclosed.
Guy Carpenter has underlined how a growing range of capital sources and the awareness “of the benefits better risk syndication” supports the effort to maintain premium rate adequacy and stable capacity.
Provider of industry-wide catastrophe exposure, industry loss data and indices, PERILS AG, has announced its expansion outside of Europe for the first time, extending its market coverage to include a range of Australian risks.
Reinsurance broker Willis Re has announced that it has upgraded its cyber risk modelling tool, Prism Re, to cover the exposure of network outage.
According to industry reports, ex-AIG Chairman Maurice Greenberg is prepared to fight in order to clear his name in relation to an 11-year old lawsuit that accuses him of hiding the company’s financial troubles from shareholders.
Regardless of qualifying losses having further eroded the aggregate retention layer beneath the trigger point of the Gator Re cat bond, this week the latest secondary market trading price increased.
The UK Treasury has reportedly moved to approve new regulation that will enable ILS to be issued in London from next year.
The CIRC, the Chinese insurance regulator, recently announced that mainland insurance companies can trade on the Shanghai-Hong Kong Stock Connect.
According to reports from the region the life insurance sector in Malaysia is undergoing positive developments led by its products and services for the rakyat.
Want to receive this news by email every morning? Just fill out the form below.