Market News

International Financial Reporting Standards (IFRS) 17 is reshaping reinsurers' financial reporting, adding complexity without significantly altering profitability, according to an AM Best report. The standard changes how financial statements are interpreted and compared, particularly affecting traditional metrics and profit recognition timing, especially for life reinsurers. Overall profitability remains stable despite these challenges. Read More

A.M. Best's webinar detailed the robust performance of captive insurance companies, emphasizing their growth and adaptability during a hard market. Industry experts discussed the increasing role of captives in innovative risk management solutions, underscoring their importance in today's challenging insurance landscape. Read More

Latin American reinsurers benefit from gross domestic product growth but face capacity issues, particularly after Hurricane Otis. The increasing use of managing general agents (MGAs) is helping to support the market, filling gaps left by global reinsurers and aiding in risk management across the region. Read More

Risk retention groups (RRGs) provide essential insurance in sectors where traditional insurers fall short. The Recreation RRG, for instance, addresses the unique needs of recreational sports. RRGs focus on stability, safety, and risk management, offering sustainable solutions for their members and ensuring availability where coverage is hard to find. Read More

Reinsurance capital rose 7 percent in 2023 to $568 billion, with further growth expected in 2024. Traditional capital increased significantly, particularly in Bermuda, while third-party capital saw modest gains, driven by catastrophe bonds and collateralized reinsurance, according to A.M. Best. Read More