The industry is adapting to a new norm, one shaped by the influx of alternative capital. Bermuda:Re asked the market: Are we on the cusp of profound change within the reinsurance industry as a result of increasing capital markets interest, and how will this change the dynamics of the industry?
Beyond life, cat risk has received the near- undivided attention of convergence capacity. The potential to match convergence capital with more specialty risks is being considered.
Bermuda will play host to leading ﬁ gures from the burgeoning convergence space this November, as thought leaders and dealmakers from the insurance, reinsurance and capital markets descend upon Hamilton to explore market trends and build contacts.
Bermuda has been the jurisdiction of choice for many newly formed collateralised reinsurance and dedicated fund structures. As new investors and managers enter the ILS market, will the Island still be the favourite?
Bermuda:Re spoke with Jamie Veghte, who leads XL Group’s Reinsurance Operations, about how the reinsurer is positioning itself to leverage the potential of convergence capital and emerging markets.
Bermuda:Re spoke with leading figures from the market and asked their views on five key issues challenging the market from rising convergence capital to the value of emerging markets.
Much is spoken about the need to encourage greater innovation in the sector. Convergence capital may just deliver some much-needed impetus.
Convergence transactions have traditionally been dominated by US-centric perils, but improved pricing and greater model granularity are encouraging a rise in the number of diversifying perils.
Rising levels of convergence capital will require a change of strategy among reinsurers, with those that lack an identifiable brand or the underwriting expertise likely to be left behind.
Convergence capital is proving increasingly attractive to state risk pools as the interest shown by capital markets in the cat space shows no sign of waning.