AM BestTV at the SIRC Conference: Capacity Crunch Looms in Retrocession Market
OLDWICK, N.J.--(BUSINESS WIRE)--Nov 5, 2019--
In this AM BestTV episode from the Singapore International Reinsurance Conference (SIRC) in Singapore, attendees said that as a result of additional catastrophe losses in 2019 and trapped capital in the insurance linked-securities market (ILS), the demand for retrocession insurance may outpace supply, pushing prices higher. Click on http://www.ambest.com/v.asp?v=sirc21019 to view the entire program.
Catastrophe losses in 2019 are expected to dent reinsurance earnings, and those losses also can result in an additional capacity crunch in the retrocession market.
“What we expect to see is a continuing hardening of the retrocession markets,” said Philippe Dormart, head of underwriting, property/casualty, Partner Re Ltd. “The losses into 2019 have continued to pile up and impact the retrocession market, whether it is traditional capital or ILS-driven. We expect the hardening to continue in the retrocesssion space.”
Zainudin Ishak, president and chief executive officer, Malaysian Reinsurance Bhd, addressed how this retrocession market is impacting his company’s ability to operate in the space.
“We have a situation in the last couple of years where the retrocession market is getting more and more challenging, as well as a more difficult formulation for a reinsurer like Malaysian Re. Do we have capabilities to transfer some of the rising cost of the retrocession to our partners? The answer is no, and so the margin formulation is being compressed,” he said.
For full video coverage of the SIRC conference, including exclusive executive interviews, visit http://www.ambest.tv/sirc19.
Other people that appear in this episode:
Recent AM BestTV coverage from the SIRC conference includes:
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KEYWORD: NEW JERSEY NORTH AMERICA UNITED STATES ASIA PACIFIC EUROPE SINGAPORE
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SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 11/05/2019 10:17 AM/DISC: 11/05/2019 10:17 AM