Our Scans · (FS.4.01) Insurers' Business Model · Weekly Summary

• [New] Australia is heading into a summer shaped by warm oceans, a negative Indian Ocean Dipole and a likely weak La Nina, with insurers bracing for a cocktail of flood, cyclone, convective storm and heatwave risk that could pressure loss ratios, capital and reinsurance costs. Insurance Business
• Over the next year, reinsurance buyers have indicated a strong preference for catastrophe bonds when it comes to utilising alternative capital, while insurance-linked securities funds are expected to see increased demand too. Artemis.bm - The Catastrophe Bond, Insurance Linked Sec
• Over 2026, reinsurance buyers have indicated a strong preference for catastrophe bonds when it comes to utilising alternative capital, while insurance-linked securities funds are expected to see increased demand too. Artemis.bm - The Catastrophe Bond, Insurance Linked Sec
• Dedicated reinsurance capital is projected to reach approximately $650 billion by year end 2025. Artemis.bm - The Catastrophe Bond, Insurance Linked Sec
• London Bridge 2 PCC, is a regulated insurance-linked securities platform for Lloyd's of London that transforms both insurance and reinsurance risk into investment opportunities for institutional investors. Artemis.bm - The Catastrophe Bond, Insurance Linked Sec
• Capital constraints in global reinsurance mean treaty pricing will remain sensitive to Northern Hemisphere loss activity, even if Australian catastrophe experience moderates. Insurance Business
• A strong insurance sector, with ready access to global reinsurance markets, is essential for Australia to manage the growing risks from extreme weather. Insurance Business
• The Government Superannuation Fund Authority of New Zealand has demonstrated its growing appetite to invest into catastrophe bonds and other catastrophe reinsurance opportunities, by adding insurance-linked securities specialist Elementum Advisors to its roster of managers in 2025. Artemis.bm - The Catastrophe Bond, Insurance Linked Sec
• The Texas Windstorm Insurance Association is now projecting that the amount of reinsurance and catastrophe bonds it may require for the 2026 wind season could be roughly 46% lower than this year's program, with $2.3 billion of limit the current forecast. Artemis.bm - The Catastrophe Bond, Insurance Linked Sec
• APRA plans to refine its regulatory framework to better balance safety, efficiency, and competition, including formalising a third tier of proportionality in banking regulation and exploring ways to make reinsurance more accessible. Insurance Business
• With still $2 billion of statutory funding expected to be available and an estimated $200 million in the replenished Catastrophe Reserve Trust Fund, it means the reinsurance and cat bond need for 2026 could be $2.3 billion. Artemis.bm - The Catastrophe Bond, Insurance Linked Sec
• The Texas Windstorm Insurance Association is now projecting that the amount of reinsurance and catastrophe bonds it may require for the 2026 wind season could be roughly 46% lower than 2025's program, with $2.3 billion of limit the current forecast. Artemis.bm - The Catastrophe Bond, Insurance Linked Sec
• Australia could be a step closer to having a government backed flood reinsurance pool. Insurance Business
• Insurance markets across the European Union could benefit if recent proposals to establish a bloc-wide public-private reinsurance scheme for climate-related losses moves forward. ReinsuranceNe.ws
• Munich Re, one of the world's largest reinsurance companies, has joined forces with Trust Edge Risk Solutions, Equirus Raghnall Brokers, and Solarelle Insurance to launch the Maldives' first insurance policy designed specifically to address epidemic and pandemic risks. ReinsuranceNe.ws
• Global reinsurance giant Munich Re has provided the capacity to support a parametric wind proxy hedge risk transfer product, structured using a solution from kWh Analytics, for a 79 MW, wind project in Virginia, developed by Apex Clean Energy. Artemis.bm - The Catastrophe Bond, Insurance Linked Sec
• Researchers at Swiss Re, a reinsurance company in Zurich, Switzerland, released estimations that GLP-1 drugs could lead to a 6.4% reduction in all-cause mortality in the U.S. by 2045. Yahoo News
• In a recent report, rating agency AM Best points to the potential for expansion of the collateralized reinsurance and private insurance-linked securities space, not least as catastrophe bond risk-adjusted spreads tighten in 2025. Artemis.bm - The Catastrophe Bond, Insurance Linked Sec
• The Asia-Pacific VR insurance segment is growing with a 17.5% CAGR through 2028, driven by investments in VR-enabled claims processing and policy customization. CoinLaw
• Abu Dhabi National Oil Company has entered into a strategic collaboration with RIQ, an AI-driven reinsurance platform backed by International Holding Company, to allocate more than $500m in risk coverage over the next decade. Gulf Business
• While property rate increases have abated somewhat recently, possible increases in 2025 into 2026 due to trade policy uncertainty and the sustained impacts of high-impact natural catastrophes could benefit insurance brokers' top line revenue growth. PwC
• The insolvency of major insurance or reinsurance firms, or the collapse of real estate markets in climate-vulnerable regions, could destabilize credit systems and send shockwaves through global capital markets, amplifying systemic risk. Better Worlds

Last updated: 28 October 2025