News relating to the Bermuda and international insurance and reinsurance industry.
The reinsurance industry must rediscover its core skill of assessing, managing and transferring risks instead of being preoccupied with the continuing influx of capital into the market.
Although the European market generally enjoys fewer big losses in comparison with the US, the recent flood losses in Germany and Central Europe represent a stark reminder that big losses do occur and can hit the market’s insurers hard.
The lower margins made on reinsurance catastrophe business placed in Europe combined with less established risk models available to assess these risks means that buyers in Europe are less likely to be using alternative capital sources to place these risks, says Manfred Seitz.
That is the view of John Welch, president and CEO of XL Reinsurance America, who said that barring a major catastrophe event, the US reinsurance market should prepare for a continuing downward trajectory in rates following a competitive mid-year renewal.
Four new syndicates were approved to write business at Lloyd’s in 2013, with two existing syndicates looking to increase capacity and a further three new entrants agreed in principle for 2014.
With cat bond issuance set to surpass 2012’s record of $6.4 billion and Fitch estimating that it could reach $7.2 billion by year’s end, 2013 is set to be a bumper year for ILS with the fourth quarter still to come.
Hiscox expands its Bermuda casualty team with the addition of Nicholas Pascall as senior vice president and Sharmini Samuels as assistant vice president.
A three-year $63 tax on health insurance plan enrolees will not stimulate reinsurance buying, but it will create a war chest for insurers and a “ready source of funds to smooth out the impact of high cost claims” associated with Obamacare.
Bermuda-domiciled R&Q has acquired Cypriot re/insurer, FAIR from Validus for $24.1 million in its biggest deal in five years. FAIR has been in run-off since 2010.