Analysis

The momentum for rate increases has built up in a delayed reaction to losses.

Typhoon Jebi creep continued to have an impact on performance, with multi-instrument ILS funds reporting an average loss of -0.78 percent for the quarter.

Activity in the first half of the year was the lowest since 2011.

Ten months on from Typhoon Jebi, there is still considerable uncertainty around why the storm’s insured losses are expected to be so much higher than the initial modelled figures.

The ILS market has broadly welcomed moves by the Bermuda Monetary Authority (BMA) to create a new collateralised insurance vehicle, but opinions vary on whether the new rules will prove to be onerous.

The industry’s market heavyweights remain split amongst different types of ownership models.

M&A deals have resulted in reinsurer affiliated businesses overtaking the market share of independent ILS firms, but asset managers have also grown their share via new launches since 2014.

With Nephila’s market share slightly shrinking, RenaissanceRe and Gen Re moved up the Florida leaderboard.