Trading Risk October 2018

ILS managers and investors are exploring options for investing in Lloyd’s corporate member vehicles, a market that is more traditionally dominated by trade and Names capital.

Steep deterioration in Hurricane Irma losses will focus attention on collateral release mechanisms in 2019.

A gloomy pub in Lime Street, EC3 – the kind where light barely penetrates stained glass windows, hiding any grubby floors – is an apt metaphor for the opacity of the reinsurance markets.

Canopius is planning to launch an ILS vehicle on 1 January 2019, the company’s Bermuda CEO Charles Craigs said.

Securis Investment Partners has raised $370mn in subscriptions for the second vintage of its Securis Life Fund, the firm told Trading Risk.

Markel’s upcoming acquisition of Nephila Capital should put the ILS manager in a good position for expansion, Markel co-CEO Richie Whitt told Trading Risk.

Lloyd’s is keeping up the pressure on managing agents during the 2019 business planning process, as sister title The Insurance Insider reported that up to five syndicates had been sent letters warning that they could be forced into run-off.

US property excess and surplus lines will benefit from rate increases in 2018 after the segment took the brunt of losses in 2017.

Willis Towers Watson may look to push its G360 broker facility into a delegated authority platform, sister publication The Insurance Insider reported.

Modelling firms have put an average $3.8bn loss estimate on private market claims from Hurricane Florence.

The US flood market has traditionally been the domain of the publicly backed National Flood Insurance Program (NFIP).

Conservative initial loss picks may have helped limit adverse development from the 2017 hurricanes, according to JLT Re.

Florida Citizens has recovered more than a third of its $350mn “wrap” insurance cover from reinsurers, with payments led by Validus.

Tremor Technologies’ electronic auction house for reinsurance made its first trades this summer, joining a growing number of initiatives aimed at creating online marketplaces for risk trading.

Tullett Prebon has signed up 60 clients so far to its London-based Insurance Linked Notes (ILN) platform, which enables lower-cost and anonymous live trading of industry loss-based securities.

Distribution and transaction efficiencies have been targets for InsurTech gains but the time for underwriting improvements will come.

Leaders at AIG and Axa XL have signalled plans to further develop their use of ILS capital after closing recent acquisitions.

ILS investors may push for higher returns from the sector if 2018 proves to be a break-even year, Pioneer ILS analyst Chin Liu said during the Munich Re ILS roundtable in Monte Carlo.

Reinsurers have tipped cyber risks as an area of potential growth for the industry but noted concerns about how to manage aggregate exposures.

People moves in the ILS market, October 2018