Reinsurance has an identity crisis
Monday, 09 07 2015, Category: Insurance and Reinsurance, Country: World
The reinsurance market and its reinsurers are suffering from an identity crisis, increasingly borrowing from the insurance-linked securities (ILS) market as they behave more like ILS players and third-party capital providers, according to rating agency Standard & Poor’s.
The line between the traditional reinsurance and the insurance-linked securities (ILS) markets are becoming fuzzy, S&P says. With reinsurers dealing with competitive pressures, the softening market and other negative macro environment factors, “traditional reinsurers are beginning to behave like third-party capital suppliers.”