Eurekahedge - Other Products and Services
Fund Of Private Equity Fund Database Free Trial

Hedge Fund News

EH Report

Capital Raising Suite

‘Mizuho-Eurekahedge Index’ goes live

Asian Hedge Fund Awards

Industry Events Calendar

Fund Launches and Closures


Eurekahedge Hedge Fund Indices

Hedge Fund Monthly
Risk Intelligence - Generating Long Term Profit within the Catastrophe (Re) Insurance Market
Gero Michel (Senior Vice President, Chief Risk Officer and Head of Risk Analytics)
Montpelier Re
July 2013

In considering the future economic potential of the catastrophe reinsurance market, I will examine current issues including rate adequacy, uninsurable and indirect losses, as well as the use of vendor models. I will discuss how new ideas, regulation and a new breed of scientists are changing the industry and conclude that the market will only be profitable in the long-term for a select group of leading reinsurers.

One of our investors recently asked whether the catastrophe reinsurance market will be profitable in the long-term. The question hinted at tail catastrophe risk, the accuracy of catastrophe models, and concerns about the ability of large events to wipe out profits for years. The short answer is, yes, the market will be profitable because: (1) the insurance market depends on catastrophe (re)insurance; (2) no other line requires similar levels of capital to stay afloat; and (3) large losses trigger capital shortages which are followed by premium, price increases and possibly by capital influx. For these reasons, catastrophe (re)insurance in general is unlikely to follow the fate of other (re)insurance lines which have remained in deficit for years. But there is much more to this­ story....

Please Login to read the rest of the article

Not a subscriber? Click here to register for the FREE news articles

For further information on Eurekahedge online products, please contact our sales staff for a FREE demonstration:

Eurekahedge Research Data
Sales Line: +65 6212 0925
US: +1 646 710 4898 / +1 646 710 4899

If you have any comments about or contributions to make to this newsletter, please email


Industry News
  The Eurekahedge Report - April 2014  
  Asset Flows Update for the Month of March 2014  
  Hedge Fund Performance Commentary for the Month of March 2014  
  2014 Key Trends in European Hedge Funds  
  The Billion Dollar Interview with David Harding, Chairman and Chief Executive Officer at Winton Capital Management  
  Interview with Vincent Lam, Chief Investment Officer at VL Asset Management  
  A Supportive Environment for Vietnamís Stock Markets  
  Derivative Regulations for Swiss Pension Funds  
  Russia: A Vast Opportunity for Islamic Finance  
Eurekahedge Hedge Fund Manager Travel Plans

Copyright © 2014 Eurekahedge Pte Ltd.
Use of this site is subject to our terms and conditions of use.