Ben & Tom run through what’s happened within the world of reinsurance during the past month.
LA Wildfires:
Estimated losses ranging from $10-45 billion.
The difficulty in predicting loss estimates due to varying projections from different suppliers.
State Farm's claims payments of nearly half a billion dollars (home and auto combined), including vehicle losses.
Impact of reinsurance retention and buying strategies on losses.
Bermuda’s exposure to the losses and the impact on reinsurance stock.
The effect of the LA wildfires on reinsurance rates for the year.
Cyber Risk and AI Threats:
Allianz identifies cyber-attacks as a top concern for 2025.
AI’s potential to amplify cyber-attacks, with malicious use on the rise.
Growing recognition from insurers about the risks posed by AI in fraud and attacks.
Collateralised Reinsurance and Cat Bonds:
Strong cap bond market and the return of collateralised reinsurance.
The cyclical nature of returns from collateralised reinsurance and cap bonds.
Commentary on hedge funds’ interest in collateralised reinsurance.
Protection Gap and Capital Investment:
Aon highlights a 60% protection gap, with net cat losses expected to reach $368 billion in 2024.
The importance of increasing capital in the space to close the protection gap.
Natural Catastrophe Losses in the UK:
UK’s worst property losses since 2007 due to storms.
Named storms and their increasing frequency in the UK.
Industry Gossip:
John Neal leaving Lloyd’s to join Aon and its potential impact on Lloyd’s leadership and modernisation initiatives.
Discussions surrounding leadership changes at Willis Re, backed by Bain, and the speculation around the next leader of their reinsurance team.
Join the Conversation: https://forms.gle/ZtofYjbgpLQVaXQ16
Say Hello: [email protected]
Website: https://www.supercede.com
LinkedIn: https://www.linkedin.com/company/supercedehq
Twitter: https://twitter.com/SupercedeHQ
YouTube: https://www.youtube.com/@SupercedeHQ
RSS Feed: https://anchor.fm/s/7e741c8c/podcast/rss