GLRE - COVID-19 BI An Existential Threat Reinsurance Capital Availability Key: Willis Re
Business interruption claims from the COVID-19 coronavirus pandemic pose an "existential threat" to the entire reinsurance industry, broker Willis Re said Thursday.
At the same time, the pressures from the pandemic are likely to push re/insurers to support their capital through de-risking and hedging, making reinsurance capital availability key.
Of course, this also positions the insurance-linked securities ((ILS)) market as a potential source of hedging capacity, as increased demand for protection and risk transfer at the same time that the traditional reinsurance industry is de-risking its balance sheets and facing a drop in capital due