Despite lower expected return, ILS risk premium remains attractive: VP Bank
Given the softening of reinsurance rates and compression in risk spreads across catastrophe bonds and insurance-linked securities, the expected return of ILS investments is generally at a lower level, but private bank and asset manager VP Bank AG has noted that the risk premium available to investors is still attractive. VP Bank has been recommending […]
Reinsurance sidecar market estimated to have grown 183% since 2023: AM Best
The outstanding market for collateralized reinsurance sidecar structures has expanded rapidly, with estimates from rating agency AM Best valuing the space between $16 billion and $18 billion, which marks an 183% increase over the mid-point of the $5 billion to $7 billion range estimated by the agency in 2023. The rating agency has published a […]
Collateralized ILS, parametrics playing role in digital infrastructure risks: Goodman, Guy Carpenter
As the insurance and reinsurance market responds to the growing risk capacity needs of the digital infrastructure and data centre build-out, collateralized insurance-linked securities and parametric risk transfer are playing a role in covering exposures such as correlated power grid events, according to Guy Carpenter’s Jeremy Goodman. Speaking yesterday during a webinar on the digital […]
ABIR and Insurance Ireland call for regulatory changes to strengthen EU securitisation market
The Association of Bermuda Insurers and Reinsurers (ABIR), an industry association representing Bermuda’s international insurers and reinsurers, and Insurance Ireland, the representative body for the Irish insurance sector, are urging European Union policymakers to make regulatory adjustments to the EU securitisation framework. According to the organisations, such changes would allow proven and well-regulated insurers from […]
Cat bonds offer more favorable economics than traditional reinsurance in some layers: AM Best
In the current market environment, cedents choosing to sponsor catastrophe bonds can benefit from more favourable economics than with traditional reinsurance covers in some risk layers, rating agency AM Best has said. AM Best has published a detailed new report on catastrophe bonds and insurance-linked securities (ILS), describing the ILS market as having grown from […]
Expansion of catastrophe bonds and ILS credit positive for re/insurers: KBRA
For insurance and reinsurance companies, the expansion of insurance-linked securities and the catastrophe bond market are viewed as credit positive by KBRA, with the rating agency explaining that the additional capacity the ILS market offers is increasingly important, supporting capital flexibility and protecting sector balance-sheets. Increasing volumes of catastrophe bond issuance are creating greater risk […]
Beazley CEO on cyber ILS: Next step is securitisation, transformation, ILS fund launch in 2026
In announcing its results this morning, Adrian Cox, the CEO of Beazley, the London headquartered specialty insurance and reinsurance company, has stated that, when it comes to cyber insurance-linked securities the firm’s next step is to transition into securitisation and transformation of risks, with its dedicated cyber ILS fund planned for later this year. Group […]
Broadening the investable ILS universe through proprietary catastrophe modelling: Swiss Re
As the catastrophe bond market continues to expand into new perils and more complex structures, broad and credible modelling coverage becomes highly important. However, reinsurer Swiss Re’s proprietary catastrophe models allow the firm to analyse a wider range of risks, which according to executives expands the “investable universe” while maintaining a well-understood risk-return profile. Artemis […]
AFME responds to EU’s climate resilience framework with call for expanded ILS & cat bond use
The Association for Financial Markets in Europe (AFME) has published its response to the European Commission’s Climate Resilience Framework, calling for the use of insurance-linked securities (ILS) and catastrophe bonds as an effective way that insurers within the Union can access new capital to back climate-related policies. AFME is the European member of the Global […]
Parametric pools ARC, CCRIF, PCRIC, SEADRIF to explore joint reinsurance platform
The main four parametric natural disaster insurance risk pools have committed to a unique collaboration, which will see them explore the creation of a joint risk finance and reinsurance platform. This initiative, aimed at expanding global climate risk protection, brought together representatives from African Risk Capacity Ltd. (ARC), CCRIF SPC, SEADRIF Insurance Company, and the […]