Reinsurers as capital market transformers
Wednesday, 09 23 2015, Category: Insurance and Reinsurance, Country: World
Over the next ten years global reinsurers will likely increasingly act as service providers to capital market or ILS investors, with operating units providing transformer or fronting services, as access to efficient capital becomes increasingly vital.
In a recent A.M. Best reinsurance webinar, in which the rating agency gave its view on the prospects for the market in advance of the Monte Carlo Rendez-vous, A.M. Best Vice President (VP), Robert DeRose gave his thoughts on where the reinsurance sector could be heading over the next decade.
“I think that reinsurers also will have a greater transformer capital markets operation,” said DeRose, referring to the use of insurance and reinsurance transformer vehicles increasingly being utilised in the reinsurance, catastrophe bond and insurance-linked securities (ILS) space.