Artemis Live - Insurance-linked securities (ILS), catastrophe bonds (cat bonds), reinsurance 14: Reinsurance capital inflows vs pricing, a dynamic balancing-act
Jun 19, 2020
20:33
In this podcast episode we discuss current reinsurance market dynamics and the balancing-act that is capital inflows vs pricing and rate pressure.
In a recent article we said that it's a fine line between accolades achieved through raising significant sums of new capital and rate pressure returning to the reinsurance market.
In this podcast we summarise some of these thoughts and go into more detail, of relevance to the segment of the market focused on property reinsurance and in particular catastrophe risks (where Artemis is most focused, due to its insurance-linked securities (ILS) market leaning).
The property reinsurance and catastrophe risk segment is not an area of the market that is particularly poorly capitalised throughout, but much of the capital raising activity is going to result in reinsurance and insurance players diverting more capacity to this area.
With ILS funds and other insurance-linked securities (ILS) ventures likely to bring even more capital to market over the coming 12 months, we wonder whether there could be a return to an over-capitalised segment in property catastrophe reinsurance and retrocession risks?
Or whether discipline will prevail and the market control its appetite, while enforcing a much needed and somewhat raised (from previous levels) pricing floor.
In a recent article we said that it's a fine line between accolades achieved through raising significant sums of new capital and rate pressure returning to the reinsurance market.
In this podcast we summarise some of these thoughts and go into more detail, of relevance to the segment of the market focused on property reinsurance and in particular catastrophe risks (where Artemis is most focused, due to its insurance-linked securities (ILS) market leaning).
The property reinsurance and catastrophe risk segment is not an area of the market that is particularly poorly capitalised throughout, but much of the capital raising activity is going to result in reinsurance and insurance players diverting more capacity to this area.
With ILS funds and other insurance-linked securities (ILS) ventures likely to bring even more capital to market over the coming 12 months, we wonder whether there could be a return to an over-capitalised segment in property catastrophe reinsurance and retrocession risks?
Or whether discipline will prevail and the market control its appetite, while enforcing a much needed and somewhat raised (from previous levels) pricing floor.