ILWs on standby after Sandy – Stefano Nicolini – Insurance Insider

Stefano Nicolini, SVP of BMS’ Retro/ILW team featured in Insurance Insider discussing the use of ILWs in light of Hurricane Sandy.

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Industry Loss Warranty Pricing – AM Best

BMS’ Stefano Nicolini, senior vice president with BMS Retro, featured in David Pilla’s article – ‘Curbing Enthusiasm: Industry Loss Warranty Pricing Was Set for Sharp Gains After 2011 Losses.’

The article reflects on the mild catastrophe year and the effects on the ILW pricing. Stefano talked about how there was a lot of loss activity in the beginning of 2012, driving higher expectations for the ILW market. He also discussed how if the rest of 2012 plays out without large loss activity, he thinks clients will be looking to buy addition protection in the fourth quarter, especially after the shock losses from the Thailand floods at the end of 2011.

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Click here to access the BMS Retro/ILW information.

EXCLUSIVE ILW REPORT: Vitality from volatility?

BMS’ Stefano Nicolini featured in the Intelligent Insurer exclusive ILW report.

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To read more about BMS’ ILW offering click here

ILW buyers becoming sellers

Stefano Nicolini, SVP,  featured in a news piece in Intelligent Insurer Magazine commenting on how reinsurers who previously bought Industry Loss Warranties (ILWs) appear to now be turning into sellers as a response to the current market.

To read the Full article please click here

PCI – Boom time in the ILW market

Stefano Nicolini, SVP BMS Retro, featured in the Reactions PCI Reporter discussing the industry loss warranty (ILW) business and the 1/1 renewals.

Stefano reported that the need for extra retrocessional cover has had a huge impact on the demand for ILW and overall will push up retro prices at January 2012. This alongside fears of the potential impact on pricing of the new RMS 11 catastrophe model and the Japanese earthquake has seen the popularity for buying ILW increase exponentially.

Click here for the full article on Page 5.

Pre-Baden Baden Review

Jonathan Morris, Managing Director of the BMS Retro team, considers the hot topics for debate at the upcoming Baden Baden Meeting.

I have been going to Baden Baden for the last four years and although relatively internationally focused, it has become an increasing important conference where after the early discussions of Monte Carlo Rendez-Vous; we finally get down to business and focus on client/contract specific topics. This concentration of market players in one location all with a focus on the renewal season ahead, to my mind makes Baden the real beginning of the new season.

BMS Re will be represented this year by myself and Georgina Glander. We will be hosting meetings between our clients and their markets. We also plan to see other existing and potential retro markets form Europe, Bermuda, Barbados and Scandinavia. These markets include hedge funds as well as traditional reinsurance.

I think the key discussions at Baden Baden will be focused around the poor results relating to the sizeable losses experienced in New Zealand and Japan earlier in the year and how these losses will impact throughout the market and potentially drive change. It is obvious that it will take more than one year to recoup such exceptional losses and to get clients’ portfolios back into the black.

Capacity is always a hot topic and this year talk will be around whether traditional or less-traditional forms of capacity emerging from capital-based market will be used to complete programs. These new players in the retro scene are good for clients, as a buyer they need a mix of traditional and capital markets to try to smooth out any volatility in pricing each year. There is an increase in choice for clients overall, be it Insurance linked securities (ILS), Industry Loss Warranties (ILW), traditional cover or capital markets.

In terms of the retrocessional market, it is early days regarding 1/1 renewals, but Baden will set the scene for the latter weeks in December when the decisions are made. Our biggest competitors are ‘net retentions’ and deductibles. For me, if retro reinsurance is too expensive; people will buy less of it and stay out of the marketplace for longer, which is not what we want.

I foresee loss reporting from cedants as growing concern for reinsurers and their retro reinsurers. Earthquake losses, in particular, take a long time to gather reliable data from, so both the Japanese earthquake and New Zealand have taken a long time to get accurate loss estimates to base any sort of pricing around.

Overall it is definitely going to be a tough renewal season for all concerned and I believe the above themes will dominate the industry conferences for some time to come.

Interest in Insurance-linked Securities Rises

25 September 2011

Stefano Nicolini joined in the discussion, during the Monte Carlo Conference, around the rise in investment in insurance-linked securities (ILS). After the catastrophe-heavy first quarter of 2011, particularly the affects of the Japanese earthquake,  many felt the necessity to spend on increased industry loss warranties (ILW) and as Stefano commented, the price rose in correlation with demand. However, he added that post-Hurricane Irene demand has slowed somewhat and prices had begun to flatten out.

To read more, please click here to go to The Business Insurance website.

BMS sponsors Thomson Reuters ILW chatroom

BMS is pleased to announce its sponsorship of the Thomson Reuters ILW chatroom. From 1 September 2011, the chatroom will provide daily comment, opinion and latest price action as the North Atlantic Hurricane season enters its most active period. The chatroom will be open to all members of the Thomson Reuters ILS Community and will also provide a forum within which participants from across the market can exchange their views.

For more information on the Thomson Reuters ILS Community, please click here. To gain exclusive access to the chatroom, please email reutersils@reuters.com

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What is an Industry Loss Warranty (ILW)?

Stefano Nicolini, SVP BMS Retro explains what an Industry Loss Warranty is and the key role they play in the catastrophe market.  Watch the video to learn more about ILW and the vital role they play in the insurance market and how the current market conditions mean the need for them is ever more present.

Basically a ILW is a contract that can be done in a reinsurance format, on a derivative format, where the contract is triggered by an event instead of on an actual loss to the company. A trigger which is an ILW or an Industry Loss Warranty, which is based on the loss to the industry overall from a catastrophic event….watch to learn more.

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ILW u-turn as retro rates climb

Stefano Nicolini featured in Insurance Insider reviewing how the market is investing in more ILW capacity.

Visit the Insurance Insider website for the full article.