Magazine date:
Oct 2012 According to a survey conducted by AON, just eight reinsurers have disappeared since the year 2000. Reinsurers, who became insolvent, account for only 1% of the capacity available. They, nonetheless, managed to honor 99% of their outstanding engagements (liabilities) Despite a difficult year 2011, when losses amounted to 105 billion USD, the market’s capacity stabilized at 455 billion USD by December 31, 2011. The report concluded that reinsurance is one of the safest forms of capital available. Improving the techniques for risk and capital management is likely to further secure reinsurance.