Trading Risk December 2018
January renewals were creaking into order in December after the wildfires locked up the process.
Retro buyers are unclear over how much capacity Markel Catco will have to renew its January 2019 portfolio.
How do ILS investors know whether they’re being paid enough for shouldering catastrophe risks?
The use of rated vehicles in the ILS space is likely to become a trend which will shape the market of the future.
The Prudential Regulation Authority (PRA) has said it will re-engage with the ILS industry in 2019 to gather feedback on the first year of implementation of the UK’s ILS legislation, with a view to improving its processes.
Annual cat bond issuance for 2018 has surpassed broker-dealer predictions for a strong post-loss year.
Trading Risk view: investor fatigue
Projected cat bond losses from the 2017 disasters have increased by just over 10 percent to $997mn.
Setting up vehicles under the UK’s new ILS legislation in its first year has required huge amounts of time, money and patience.
Heavy wildfire losses in 2018 may have a heavier impact on the ILS market than in 2017.
Insurers are seeking to claim roughly $10bn through subrogation lawsuits against Pacific Gas and Electric in relation to the 2017 wildfire losses.
The retro market is likely to tighten at this year’s renewals as investors pause and reconsider their strategies following another year of substantial losses.
ILS funds with life strategies reported substantially higher transaction volumes in 2018, helping to drive growth in assets under management (AuM).
January 2018 opened the year of the “great reload” for ILS managers.