It was the "tsunami of alternative capital" that kept a lid on reinsurance rates and prevented a market turn after the major losses of 2017, but at the same time may have helped to stimulate more focus on rate adequacy in other lines of reinsurance business, according to the CEO of W.R. Berkley (WRB).
Of course, the inflow of capital into insurance-linked securities ((ILS)) funds and alternative reinsurance capital vehicles and the effect it has had on reinsurance rates, especially in property catastrophe risks, is not a new story.
But increasingly the market sees growing