Bermuda News – Hurricane and earthquake “peak risks” avoided by reinsurers offer an opportunity for investors willing to fill the gap, according to Bermuda-based Nephila Capital Ltd., a hedge fund specialising in insurance-linked investments.
“Reinsurers are forced to diversify because of rating- agency pressure, resulting in less capacity being allocated to peak-risk coverage and more to diversifying perils than is warranted,” Nephila managing partner Frank Majors said this week in an interview with the Bloomberg financial and business media group. “There is a lot of unmet demand for catastrophe cover in peak risk areas such as US hurricanes, US earthquakes, European wind storms and Japanese earthquakes.”
