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Opinion

  • Smart beta products seem to be the flavour of the month
  • At this point there are a lot of questions being asked in the reinsurance markets and few definitive answers available. As it is a journalist's privilege to ask questions, let's go through some on the list
  • There will be significant volumes of ILS capital trapped at year-end, particularly in the retro segment, but out of this challenge the reinsurance market is looking for opportunities to spin out new products
  • The first week back at the desk after the reinsurance industry's annual Monte Carlo gathering can be a long and difficult slog for executives, having powered through dozens of half-hour meetings and evening receptions in sunny Monaco
  • What a difference a week makes.
  • This is certainly not going to be a year where the reinsurance industry is twiddling its thumbs at the annual Monte Carlo Rendez-Vous.
  • The ILS market has well and truly put its foot on the accelerator this year - with cat bond volumes setting new records and ILS managers competing hard in Florida
  • Access to people with money to spend is closely guarded in the insurance and reinsurance markets. Premium dollars are shepherded carefully from insurance agents to carriers and then brokers before eventually reaching reinsurers and ILS managers.
  • Back in 2013-2014 when the cat bond market was last booming the way it is right now, the boisterous volumes of issuance prompted a bit of philosophising over whether ILS rates had "decoupled" from the traditional market.
  • ILS capacity has acted as the equaliser of Florida hurricane rates. It chased after the extra margin that reinsurers built into their calculations in taking on their peak hurricane risk, with the logical result of helping to erode the margin
  • Reinsurers live and die by their claims-paying ability, and the ILS market is no different.
  • Convergence may be a preferred term for the ILS markets, but arguably it is becoming just as much of a misnomer for today's industry as the now outmoded "alternative reinsurance"
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