Reinsurance

The market for catastrophe bonds has boomed in the past year and is likely to keep growing as investors search for higher returns.

The reinsurance industry has pulled back from protecting investors against non-payment of debt, reducing its exposure by 80 percent over the past nine years, industry regulators said on Tuesday.

As the reinsurance industry finds itself changing to meet the growing demand for cedents expanding appetite for risk, a study questions whether current underwriting practices could one day expose reinsurers to a financial debacle.

Munich Re said it was considering launching a fund to allow investors to buy catastrophe bonds and other insurance linked securities to build on the growing demand for the instruments that are linked to natural disasters.

Property and casualty carriers saw employment climb for the sixth straight month in July despite mixed employment numbers from the rest of the insurance industry, according to an Insurance Information Institute analysis of the latest U.S. Labor Departments Bureau of Labor Statistics figures.

The property and casualty insurance industry is suffering from an unwelcome surprise in its loss portfolio, as areas once perceived to be at low risk for catastrophes are generating costly cat losses, says a Guy Carpenter report.