Reinsurers utilising ILS & retro to improve profit
Thursday, 08 18 2016, Category: Insurance and Reinsurance, Country: World
The persistent inflow of alternative capital in the global reinsurance industry has enabled reinsurers to adjust their risk transfer strategies, as companies look to offset continued, and potentially damaging profitability deterioration, says Standard & Poor’s (S&P).
In an effort to mitigate the negative implications of the softening reinsurance landscape, reinsurers have, for the most part, maintained underwriting discipline.
By taking advantage of the features and capacity of the insurance-linked securities (ILS) market and increasingly utilising retrocessional protection, reinsurers continue to look for ways to manage exposures and sustain profitability in a soft market cycle.