Alternative capital may shorten the reinsurance cycle
Saturday, 09 17 2016, Category: Insurance and Reinsurance, Country: World
The influence of alternative capacity on the peaks and troughs of the underwriting cycle have been over exaggerated, according to Jean-Louis Monnier, Co-Head of ILS at Swiss Re Capital Markets and global head of ILS structuring.
Speaking to Artemis in the Swiss Re lounge at the 2016 Rendez-Vous de Septembre in Monte Carlo he thought there would probably be more volatility from the alternative market following a major loss.
“The alternative market has had relatively small influence on the reinsurance cycle as a whole. In the past, there was the thought that because you saw cat bonds being placed at quite attractive prices that this was leading the market down. I think you need to distinguish causality and correlation.”