Fungibility of capital permanently changes reinsurance cycle
Thursday, 08 25 2016, Category: Insurance and Reinsurance, Country: World
The abundance of capacity in the property catastrophe and retrocession reinsurance sector continues to contribute to a challenging environment, and signs are beginning to show of a change to the reinsurance market cycle owing to the fungibility of capital, says Markel CATCo.
During its recent half-year 2016 results announcement, the CATCo Reinsurance Opportunities Fund Ltd., a London and Bermuda listed insurance-linked securities (ILS) fund, commented on the continued soft market and heightened supply of capital.
“The excess capacity in the property catastrophe reinsurance and retrocession markets continues to prove a challenge, with signs that the reinsurance cycle is permanently changing given the more fungible nature of capital flows,” said fund manager Markel CATCo.