Reinsurers who have embraced alternative and insurance-linked securities are now being forced to pay for the losses they caused by selling them short. 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. The paper also found increased use of alternative capital allowed companies to reduce the cost of reinsurers underwriting capital, reduce exposures to peak zone probable maximum losses and expand their positions with key clients.
Reinsurers who have embraced alternative and insurance-linked securities are now being forced to pay for the losses they caused by selling them short. The paper also found increased use of alternative capital allowed companies to reduce the cost of reinsurers underwriting capital, reduce exposures to peak zone probable maximum losses and expand their positions with key clients.