Many insurers and reinsurers remain unaware of the potential consequences of changes that rating agency S&P’s is making to its insurance rating criteria – despite the fact that the adjustment could have serious ramifications for them in 2013.
In the aftermath of severe flooding in the UK for the second time this year and with insured flood losses predicted to top £1bn in 2012, the UK government and the insurance industry are trying to find a solution to the way flood risk is covered in the UK.
Endurance Specialty Holdings has said its recent acquisition of a business dedicated to providing weather risk management products is a natural fit for its business and will add another valuable service to its offering.
A new insurance product conceived by Swiss Re could provide the model for many types of similar policies applicable to different illnesses or countries being developed in the future.
Despite its reinsurance bill trebling since 2010, Ian Simpson, the chief executive of New Zealand’s EQC, says he remains impressed by the way international reinsurers have responded since devastating earthquakes hit the country in 2010 and 2011.
The trend of insurers and reinsurers offering alternative forms of capacity to the market through the use of structures such as side-cars is as much about carriers seeking diversification and better uses of their capital as it is about seeking short-term returns for investors.
The popularity of insurance-linked securities (ILS) has been evidenced by four recent catastrophe bonds.
Recent strategic moves by a number of European insurers and reinsurers to divest their US life operations are not indicative of a wider trend.
Q-Re, a subsidiary of Qatar Insurance Company (QIC), has hired eight experienced reinsurance professionals who, the company says, will spearhead its global expansion plans going forward.
Against a backdrop of low interest rates and limited investment returns, investor demand for catastrophe-linked products remains high with yet more vehicles being launched to satisfy this demand.