ORIGINAL PUBLICATION HERE With the growing use of data analytics in the digital age, the use of insurance products such as parametric insurance, is starting to grow around the world. And with the effects of climate change now a reality such policy options are becoming more attractive to people internationally in a wide range of sectors, from construction […]

ORIGINAL PUBLICATION HERE The Great Stone industrial park outside Minsk currently feels like an empty monument to political ambition, but with increased involvement from Chinese investors and Beijing’s backing it still has potential.  Flags branded with the China Merchants Group logo flutter along wide, empty roads as we make our way from the administrative headquarters […]

Alternative capital growth to “regain momentum”, reaches $97bn in 2018: Aon

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ORIGINAL PUBLICATION HERE Alternative sources of reinsurance capital, deployed into catastrophe bonds as well as through ILS funds and other collateralized vehicles, grew by a slower 9% to $97 billion in 2018, but is expected to “regain momentum” in the coming months, according to Aon. Alternative reinsurance capital had been rising by more than 10% […]

Alternative capital now 4% of $2 trillion non-life insurance market: Swiss Re

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ORIGINAL PUBLICATION HERE Alternative sources of capital now contributes at least 4% of the global non-life insurance and reinsurance market’s roughly U.S. $2 trillion capital base, according to Swiss Re. The reinsurance firm puts the overall non-life global insurance capital base at $2 trillion, 80% (or $1.6 trillion) of which comes from primary insurers, 16% […]

ILS could be attractive to $1 trillion alternatives “dry powder”

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ORIGINAL PUBLICATION HERE Alternative investment managers and funds are sitting on approximately $1 trillion of undeployed capital or “dry powder” and with few other attractive opportunities available, insurance and reinsurance linked investing has been cited as one of the more attractive asset classes. Alternative asset managers face a challenge currently as their investors want to […]

More disciplined, cautious, or just smarter reinsurance capital in 2019?

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ORIGINAL PUBLICATION HERE The annual Association of Insurance and Financial Analysts (AIFA) conference was held at the start of this month and insurance and reinsurance executives debated the influence of alternative capital and ILS, while analysts questioned whether it’s more disciplined and cautious, or if reinsurance capital as a whole is becoming smarter this year. […]

ILS community has pushed boundaries of the cat bond lite structure

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ORIGINAL PUBLICATION HERE Privately placed catastrophe bond transactions, also known as cat bond lites, have grown both in terms of size and utilisation since their introduction to the market back in 2011, with almost $2 billion of new risk capital issued over the last two years being privately placed. This is according to data from […]

ORIGINAL PUBLICATION HERE Despite a multitude of other catastrophes in 2018, the single biggest loss event for reinsurers was so-called loss creep from 2017’s Hurricane Irma. Dirk Lohmann of Schroders examines what went wrong and what the industry must learn. If there were two words to describe an investor’s perception of one of the key […]

ORIGINAL PUBLICATION HERE The insurance sector will remain attractive to investors in the first half of 2019, and there are “clear signs of momentum” in how natural catastrophe risk is priced in the equity and ILS markets in the wake of two recent heavy loss years, according to insurance investment manager Twelve Capital. In Twelve […]

Cat bond attraction as investment & risk transfer to persist, perhaps intensify

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ORIGINAL PUBLICATION HERE Catastrophe bonds are likely to remain a very attractive option for alternative investing and also as a risk transfer tool, perhaps becoming more so in the wake of the last two years of losses and the resulting market shake-out. Catastrophe bonds have not gone away, despite becoming the smaller component of the […]