Reinsurers deriving benefits from alternative capital
Thursday, 04 13 2017, Category: Insurance and Reinsurance, Country: World
Property & casualty reinsurance firms are deriving “significant benefits from their ability to leverage alternative capital” according to broker Aon Benfield, helping them to lower the cost of their underwriting capital and raising efficiency.
The penetration of alternative reinsurance capital continues apace, with the latest figures showing that alternative and ILS capital grew 13% and reached $81 billion recently, sustaining its recent growth rate and actually increasing its rate of growth in the fourth-quarter of 2016.
As alternative capital has continued to grow, now contributing an impressive 14% of total global reinsurer capital of $595 billion, according to Aon Benfield’s numbers.