A.M. BestTV: Insurance Securitization Markets Poised For Rebound

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March 4, 2016 1:38 PM EST

OLDWICK, N.J.--(BUSINESS WIRE)-- This A.M.BestTV episode looks at how new risk sponsors are buying cycles and coverages for nontraditional regions, which is in turn fueling greater interest in insurance linked-securities (ILS) markets. Click on http://www.ambest.com/v.asp?v=ilsoutlook316 to view the entire program.

The dollar amount of new catastrophe bonds issued fell in 2015 for the first time since 2011, but industry experts say the market is still vibrant.

“I don’t believe it is a concern for the industry as a whole, since risk capital increased from around $22.8 billion in 2014 to $23.5 billion in 2015,” said Asha Attoh-Okine, managing senior financial analyst, ILS, A.M. Best. “That is an increase of about 3%, and catastrophe bond issuances have averaged around $7.5 billion for the past three years.”

Attoh-Okine also addressed the issue of the market’s reaction to catastrophe bonds triggered by Hurricane Patricia, which caused $460 million in damages in 2015. “The market reacted the same way it has based on previous catastrophe bond triggers. After the event occurred, the secondary market exploded.”

Attoh-Okine sees 2016 as an exciting year for insurance, with ILS taking a bigger role in the catastrophe bond market.

Other people that appear in this episode:

  • Cory Anger, managing director, Guy Carpenter/GC Securities;
  • Judy Klugman, managing director, Swiss Re Capital Markets; and
  • Tom Johansmeyer, assistant vice president, reinsurance services, Verisk Insurance Solutions.

Recent episodes of A.M.BestTV include:

  • Cyber Coverage by the Numbers: The financial impact and coverage shaping today’s cyber liability insurance market are discussed by leading insurers who are responding to the evolving risk: http://www.ambest.com/v.asp?v=cyberbynumbers216.
  • Insurance-Linked Securities’ Market Is Poised to Widen Its Range of Perils and Formats: At the recent Securities Industry and Financial Markets Association’s Insurance and Risk-Linked Securities Conference, insurance risk securitization professionals said new classes of risk, including medical, governmental and parametric, appear set for financing by capital markets: http://www.ambest.com/v.asp?v=ils216.
  • Life Insurance Settlement Industry Explores New Markets: Highlights from the recent Life Insurance Settlement Association’s Institutional Investor Conference, where executives said they have seen a growing interest from institutional investors in the life settlement market: http://www.ambest.com/v.asp?v=lisa216.
  • Managing General Agents Work With Lloyd’s on Wire Transfers, Audits, Multiyear Contracts: Highlights from an interview with Bernd Heinze, executive director, American Association of Managing General Agents, concerning his recent visit to Lloyd’s of London: http://www.ambest.com/v.asp?v=aamga216.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

A.M. Best
Lee McDonald, 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
[email protected]

Source: A.M. Best Company, Inc.


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