|Daily Willis Review | 17 May 2018|
|Buyers’ market for cyber re/insurance: Fitch|
|According to Fitch Ratings, cyber insurers and reinsurers are facing fierce competition and a buyers’ market following the profitable results in the growing cyber market, Reinsurance News has reported.|
The ratings agency found that the increasing high-profile cyber attacks and regulatory requirements have made the cyber sector a significant growth opportunity for U.S property & casualty insurers and reinsurers.
However, as cyber profitability increases the premium renewal rates are expected to remain flat to down, the report said.
Fitch stated that underwriting results will suffer as exposure grows, and pricing movements will be affected as more capacity is attracted to the market.
James Auden, Managing Director at Fitch Ratings, said: “Profitable results in a new market are attracting competition to the cyber space.
“Roughly 75 distinct insurers wrote over $1 million each of annual cyber premiums last year alone.”
|$50 million Tangency Capital reinsurance hedge fund launched|
|Hedge fund Tangency Capital has been launched with $50 million of assets under management to invest in the reinsurance market ahead of the upcoming hurricane season, the Reuters news agency has reported.|
The report said Tangency Capital, which has offices in London and Bermuda, will invest in non-life reinsurance risks.
Reuters reported that hurricanes Harvey, Irma and Maria resulted in record insurance losses, but also further capital raising in expectation of investor demand because of higher rates at renewals in June and July.
The report quoted industry tracker Preqin as saying that despite the capital raising, only one insurance-linked fund has launched in 2018 out of a market of 82 funds.
Tangency Capital was founded by Dominik Hagedorn, Michael Jedraszak and Kai Morgenstern.
|U.S. sanctions unlikely to affect Iranian reinsurance deals: report|
|Iranian reinsurance deals with foreign counterparts are not likely to be revoked when U.S. sanctions are in place, according to the Chief Executive of the Iranian Reinsurance Company.|
“Not many deals were signed with foreign counterparts during the past two-and-a-half years and the number of deals that were signed are not so high that foreign companies would want to cancel them,” Seyyed Mohammad Asoudeh told the Financial Tribune Iranian/English news website.
The report said that when U.S. President Donald Trump announced he was withdrawing from an international nuclear deal with Iran he cast doubt over the country’s new reinsurance deals with foreign counterparts as well as its ties to other countries.
|MGA and marine group form reinsurance venture in Africa|
|Managing general agency (MGA) FourteenZeroFive and the marine group 24Vision.Solutions have launched a venture to help the take up of reinsurance for energy and engineering placements across Africa, Intelligent Insurer has reported.|
It said 24Vision.Solutions specializes in solutions for marine operations and that FourteenZeroFive focuses on energy and engineering reinsurance while investing in Africa.
Under the agreement, 24Vision will make its corporate platform available to FourteenZeroFive, with the aim of ensuring there is transparency to the reinsurance market accepting energy and engineering placements.
“By forming this partnership, we can guarantee to our clients a digital platform that will facilitate the way construction and operational risks are underwritten and managed in Africa while reducing claims frequency and severity together with associated costs,” said Attilio Tornetta, Managing Director of FourteenZeroFive.
“As well, our reinsurers will experience a transparent and linear way of managing risks accepted on their behalf, having a live control on underwriting discipline and performances.”
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