New research Wednesday argues that at least half of the jump in bitcoin and cryptocurrency prices was due to a coordinated price manipulation campaign.
Practically no one, outside of computer science departments, can explain how cryptocurrencies work, and that mystery creates an aura of exclusivity, gives the new money glamour, and fills devotees with revolutionary zeal. None of this is new, and, as with past monetary innovations, a seemingly compelling story may not be enough.
Security fears rise as South Korea’s Coincheck loses about £28m of virtual currencyThere has been a sharp drop in the price of bitcoin and other virtual currencies after South Korean cryptocurrency exchange Coinrail was hacked over the weekend.A tweet from Coinrail confirming the cyber-attack sent the price of bitcoin tumbling 10% on Sunday to two-month lows.
From Bitcoin’s inception in 2009 through mid-2017, its price remained under $4,000. In the second half of 2017, it climbed dramatically to nearly $20,000, but descended rapidly starting in mid-December. The peak price coincided with the introduction of bitcoin futures trading on the Chicago Mercantile Exchange. The rapid run-up and subsequent fall in the price after the introduction of…
Cryptocurrencies promise to realize Friedrich Hayek’s dream of a free market in money. But human societies have discovered no better way to keep the value of money roughly constant than by relying on central banks to exercise control over its issue.
Absent further major losses hitting global reinsurance and insurance-linked securities (ILS) markets this year, the expectation now is that rates are likely to lose any ground gained at renewals so far this year and return to a slow softening trend in 2019, according to analysts at Deutsche Bank. It’s no surprise really, given rate increases […]Reinsurance pricing outlook “very…
The Schinnerer Group, a specialty underwriting manager and managing general underwriter (MGU), is rebranding as Victor and putting access to alternative sources of insurance and reinsurance capital as a key strategic pillar. The Schinnerer Group is well-known to the insurance-linked securities (ILS) fund and alternative reinsurance capital market, having a commercial property facility arrangement…
The example that will be set by major insurance firms AIG and AXA, in how they integrate newly acquired third-party reinsurance capital and ILS management units within their businesses, could stimulate more ILS acquisitions, as other major insurers look to bring a manager of catastrophe risks in-house. AIG is in the process of acquiring Bermuda […]
The increase in reinsurance rates seen at the June 1st Florida renewals was disappointing for both the traditional and alternative sides of the market, leading analysts at Peel Hunt to suggest that the rates underwritten at are only justifiable if the 2018 hurricane season is benign. The June reinsurance renewals saw average rate increases of […]Florida rates only justifiable if hurricane…
Investors in the Lottoland sponsored lottery jackpot insurance-linked securities (ILS) and collateralised reinsurance are set to be on the hook for some level of payout after a EUR 90 million win by a customer triggered payouts through the firms unique Fortuna PCC insurance model. Lottoland is one of the secondary lottery providers that utilises the […]Lottoland to make Fortuna jackpot ILS…
With forecasts for the 2018 Atlantic hurricane season, which officially begins today, largely pointing to an average level of activity, Fitch Ratings believes the U.S. property & casualty insurance industry is well positioned for it, assisted by the availability of alternative reinsurance capital. Insurance-linked securities (ILS) are playing an increasingly important role in U.S. P&C […
“Prospects for a second straight busy hurricane season have diminished markedly,” according to Phil Klotzbach of the Colorado State University tropical forecasting team, as cooler Atlantic sea surface temperatures point to “profound impacts” for the 2018 hurricane season. Warm water is the fuel source for tropical storms, Klotzbach explains, but the main tropical…
As the catastrophe bond market looks to expand outside of the natural catastrophe space, terrorism risk has been highlighted as a potential growth avenue for the insurance-linked securities (ILS) sector, but while new perils bring diversification benefits, it’s essential the risk is quantifiable. Evidenced by the record-breaking level of catastrophe bond and ILS issuance in […]…
Florida’s Citizens Property Insurance Corporation said that a recent surge in claims related to non-weather water losses in South Florida has increased its costs enough to offset the lower cost of reinsurance and other risk transfer, resulting in the need for a proposed statewide average rate increase of 7.9%. The Florida Citizens Board of Governors […]Non-weather water & AOB losses…
Nephila Climate, the weather and climate risk focused unit of ILS and reinsurance investment giant Nephila Capital, and often partnering insurer Allianz have together completed the first wind farm proxy revenue swap transaction in Australia, hedging price and volume risks including weather exposure for a new wind farm project in Victoria. It’s the first time […]Nephila & Allianz…
Severe convective weather that struck North America in May 2018 with thunderstorms, tornadoes, large hail, flooding and strong winds is estimated to have caused somewhere around $2 billion, perhaps more, of insurance and reinsurance industry losses by Aon. The toll will make May the most impactful month of severe weather so far this year across […]North American thunderstorms drive $2bn+…
Florida headquartered primary insurer Universal Insurance Holdings has successfully completed the placement of its 2018-2019 reinsurance program, which extends the top of its tower to $3 billion of coverage, while adding more multi-year protection as well. The largest insurance-linked securities (ILS) fund investment manager Nephila Capital is among the lead participants in Universal’s…
Bermuda-headquartered ILS and reinsurance management, servicing, risk transformation and fronting specialist Horseshoe Group has announced the hiring of Anna Pereira as SVP, Head of Treasury and Mark Lavery as SVP, Head of Marketing & Communications respectively. Horseshoe said the hires are part of its efforts to further strengthen its global offerings to the reinsurance and […]