TPRE - Disruptive With Benefits - Third-Party Capital Still A Threat To Stable Reinsurers Says A.M. Best
Third-party reinsurance capital from the insurance-linked securities ((ILS)) market and alternative capital vehicles remains a threat to the stable outlook for the global reinsurance market, rating agency A.M. Best believes.
While the rating agency highlights the fact that in reinsurance "traditional capacity has become more closely aligned with third-party capital," it still sees the potential for an imbalance in supply and demand to once again soften global property catastrophe rates.
A.M. Best has maintained its stable outlook on the global reinsurance industry, despite the threat posed by the ongoing COVID-19 coronavirus pandemic, citing in particular