Alternative reinsurance capital growth outstrips traditional
Wednesday, 01 06 2016, Category: Insurance and Reinsurance, Country: World
The growth of alternative reinsurance capital has outstripped global traditional reinsurance capital in 2015, reaching $69 billion at the end of the third-quarter, now doubling the property catastrophe reinsurance capacity of the market, according to Aon Benfield.
Global reinsurance capital remained unchanged at $565 billion at the end of Q3 2015, according to reinsurance broker Aon Benfield’s latest market outlook report. That represents a contraction of the overall market, down 2% from the end of 2014, but over the same period alternative capital and ILS capacity from capital market investors continued to expand.
Aon Benfield reports that “the value proposition of reinsurance improved further” at the January 2016 renewals, with insurance companies able to incorporate reinsurance into their underwriting capital structures with “modestly better pricing, terms and conditions.”