Welcome back from the long weekend. As promised, RMN goes daily on June 1. Loyal members get an early sneak preview starting today.
The big picture: Offshore reinsurance has become a systemic risk channel financial supervisors are only beginning to map and the institutions running it are taking the long end of the trade.
- Risk: The Bank of Japan flags asset-intensive reinsurance and PE affiliated
– Bermuda reinsurers as a cross-border financial stability concern; Japan now represents 19% of Bermuda cessions.
– Cyber catastrophe bonds price at 6.49× expected loss vs 2.44× for property, but Les Barclays argues AI-driven cloud events make the correlation matrix endogenous to the same tech concentration being securitized. - Models: Imperial College of London back-calculates 900+ true cases in the DRC
– Ebola outbreak vs. 246 confirmed at declaration; a modeling gap that's itself the risk signal. - Markets: Offshore assets doubled since 2010 to $64T; Bermuda holds $1.5T in reinsurance (15% of global capital).
– SpaceX files an S-1 with zero insurance on Starlink.
Here is a breakdown of the details...
