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Reinsurance and Fronting

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Cat Bond, ILS Issuance Sets First-Quarter Record

The catastrophe bond and insurance-linked securities (ILS) market saw record first-quarter issuance of more than $5 billion, according to data compiled by Artemis. The first-quarter issuance was up 82 percent from the same period in 2019 and was 19 percent higher than the previous first-quarter record set in 2018.
April 03, 2020 Read More
  Capital Source

Ample Capital Should Help North American P&C Sector Weather COVID-19

Impact stress tests reflect that ample capital buffers at North American property-casualty insurers and reinsurers should make any fallout from COVID-19 manageable for those companies, according to S&P Global Ratings. Financial market turmoil and the ensuing recession pose a greater pitfall than underwriting exposure to COVID-19 pandemic risk.
March 31, 2020 Read More
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Fitch Ratings' Outlook for Reinsurers' Fundamentals Turns Negative

Fitch Ratings has revised its outlook for the underlying fundamentals of the global reinsurance sector to negative from stable due to increased concerns over COVID-19 and its related impacts on reinsurers' credit quality. Fitch's outlook for the ratings levels in the reinsurance sector remains stable, the rating agency said.
March 27, 2020 Read More
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ILS Market Has Been Tested by Losses but Continues To Grow

New issuance of catastrophe bonds and other insurance-linked securities (ILS) may vary from year to year, but over time the volume of reinsurance capital represented by the outstanding securities in the marketplace has steadily grown. In responding to losses, ILS have demonstrated viability as an alternative method of ceding risk.
March 16, 2020 Read More
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First Quarter Cat Bond, ILS Issue Volume on Pace To Set New Record

First-quarter catastrophe bond and insurance-linked securities (ILS) issuance is on a record pace, according to a report from Artemis. Anticipated first-quarter volume of $5.1 billion in new catastrophe bonds and insurance-linked securities is 84 percent higher than during the same period in 2019.
March 10, 2020 Read More
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RAA Praises US Budget Risk Transfer Amendment

The Reinsurance Association of America (RAA) is praising an amendment to a fiscal 2021 US budget document that encourages federal agencies and departments to take advantage of risk transfer options.
March 05, 2020 Read More
  Miami

Hard Market Draws Record Number to World Captive Forum

World Captive Forum attendees agreed that the hard insurance market is driving the substantial increase in interest in captive insurance companies, and Kirkway International’s Michael Woodroffe prescribes some practical reinsurance tactics to use in the hard market.
January 31, 2020 Read More
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Lloyd's "Blueprint One": A Critique

In this review and critique of the recently released Lloyd's "Blueprint One," a strategic plan for the future of the market, we offer commentary concerning how captive insurers may want to participate in this process. Additionally, we are seeking feedback from captives with their own thoughts of this process.
November 13, 2019 Read More
  Global Outlook-SF

Global Reinsurance Outlook 2020

A Standard & Poor's global reinsurance outlook for 2020 has implications for captives. We explore some of the threats to reinsurers and how captives may also face similar issues.
September 18, 2019 Read More
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How Do Captive Insurers Use Reinsurance?

A captive is an insurance or reinsurance company set up exclusively to insure or reinsure the risks of the group to which it belongs. A captive insurer may operate as a direct insurer or a reinsurer. Read on to find out more about how captive insurers use reinsurance.
May 20, 2019 Read More
  First Quarter 2-SF

Synopsis: 2019 1Q Reinsurance Markets

This synopsis of the major reinsurance brokerage reports on the January 1 reinsurance renewals also includes the factors captives need to watch. Captive insurers should focus on three areas that bear continued surveillance.
April 29, 2019 Read More
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Reinsurance Issues and Captive Insurer Claims Handling

According to Lynn Sheils, general counsel of EWI Reinsurance, under the notice clause and the claims cooperation clause, a reinsurer has the duty to pay unless it has been prejudiced. Prejudice may be easier to show if a captive insurer is not handling its claims like a traditional insurance company.
March 21, 2019 Read More
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Risk Pools Have Served the Insurance Market Admirably

A new resource from the Captive Insurance Companies Association (CICA) addresses misperceptions and outlines commonly accepted practices for risk pools. Hear from CICA's board chair, Joel Chansky, about the association's latest guidance document for risk pools.
February 05, 2019 Read More
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Captive Insurance Runoff Trends

According to EWI Re, runoff is increasingly seen as a means of allocating dedicated capital as an alternative permanent risk funding mechanism for entities seeking an exit from a particular segment of business. This has created a more secure global insurance system and has reallocated capital and insurance capacity efficiently.
January 08, 2019 Read More
  2019 Starting Lin-SF

Captive Insurers and the 2019 Reinsurance Markets

We look at early indications of renewal rates for 2019 reinsurance placements and comment on how they may impact the captive insurance market. Specifically, we review reports issued by JLT Re and Willis Re on the January 1, 2019, renewals and what captives can anticipate.
January 07, 2019 Read More
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What Is a Fronting Arrangement, and Why Do Captive Insurers Use Them?

An insurance pundit once observed that "fronting" is the same as "backing." That seemingly oxymoronic comment is not far off the mark in describing the relationship between a captive insurer and a fronting arrangement. Read on to find out more about fronting arrangements and captive insurance.
November 12, 2018 Read More
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Key Concepts for Captive Insurance Reinsurance Contracts

We take a look at some key concepts and reinsurance contract clauses that can help minimize the likelihood of a disagreement with your reinsurers. And, should these disagreements arise, the concepts and contract wording can provide additional protection to a captive insurance company.
October 31, 2018 Read More
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ILS in a Nutshell and Collateral in the ILS Market

Captive.com recently caught up with a few members of Wilmington Trust's collateral team to find out about their expertise with collateral trusts and how it relates to the team's involvement in the insurance-linked securities (ILS) market. Read on to find out about the ILS market and ILS collateral.
October 17, 2018 Read More
  Steve McElhiney

Growth in Reinsurance and Captive Insurance Runoff Transactions

Runoff and related transactions present an enormous opportunity in the property and casualty industry, says Steve McElhiney, president and CEO of EWI Reinsurance. There are many captive insurance companies around the world that are subject to using runoff solutions, and many great opportunities for growth in runoff transactions exist.
October 15, 2018 Read More
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US-EU Covered Agreement—an Overview

Eversheds Sutherland provides us with an overview of the US-EU covered agreement. The agreement will eliminate collateral and local presence requirements for qualified US reinsurers operating in the EU insurance market, and will eliminate the requirement for collateral for qualified EU reinsurers operating in the US insurance market.
September 24, 2018 Read More