Alternative capital competition to offset life hardening
Saturday, 05 27 2017, Category: Insurance and Reinsurance, Country: World
Alternative sources of reinsurance capital and their appetite to access diversified sources of insurance and reinsurance risk, including life risks, are expected to offset the price hardening effects of consolidation in the life reinsurance sector, according to Deloitte.
A new report from Deloitte looks at the use of reinsurance capital, how that has changed and concludes that reinsurance remains core to capital management in the global re/insurance sector, although how it is used is forecast to continue to change in response to market forces.
In life reinsurance, the sector that has been beset by heavy competition from traditional reinsurance sources, which to-date has actually hindered the growth of alternative capital and insurance-linked securities (ILS) exposed to life risks such as mortality and longevity.