December 2016/1

RMS said its medium term rate (MTR) hurricane model, which is to be released next year, is likely to show a 5 to 15 percent drop in average anticipated losses in a reflection of the quiet seasons of 2014-2016.

Sensitivity-case hurricane risk modelling has become the ILS market's standard currency, but would shifting to the base-case scenarios provide greater stability for investors and underwriters?

Industry loss warranty (ILW) purchasing by ILS funds has helped to drive incremental volumes in the niche sector in 2016, market participants said.

A new regulatory landscape and M&A activity created opportunities for the life sector in 2016, as more companies looked to the ILS sector to transfer risk.

It has been a sponsors' market in 2016, with undersupply meaning reinsurers have been able to exceed target sizes and secure favourable pricing.

The Kumamoto earthquake in April was the most expensive catastrophe for insurers this year with insured losses of $5bn, according to Swiss Re Sigma estimates.

2016 has been a year of diverging strategies for ILS fund managers, with some chasing expansion in specialty reinsurance and others focusing on branching out into new spheres of catastrophe exposure.

Lloyd's worries; Nine Merchants; Scor CoCo; PSERS adds RenRe; Silverton renews; Athene IPO; Fronting start-up; New ILS launch; Ironshore sale

Oppenheimer ILS fund gains; PGGM eyeing ILS expansion; Blue Capital weather fund

Albourne Partners senior analyst and partner Michael Hamer said developing a reporting template for insurance funds would be a "win-win" for investors and ILS managers.

Nephila's Lloyd's business is among the fastest growing in the market after the syndicate nearly doubled its capacity for next year to £228mn ($289mn).

Markdowns to the Gator Re cat bonds in late November caused average cat bond spreads to spike heading into the end of the year, according to data from RMS.