About Us Access to Markets
Thanks to its innovative and unique platform, CSILS can offer counterparties various risk transfer options. Furthermore, it provides broad and cost-efficient access to the most important insurance and reinsurance markets.
A rated reinsurance company enjoys the benefit of not having to collateralize all the liabilities it underwrites. This is because the counterparty/cedent relies on the rating of the reinsurance company. As a result, a rated reinsurer can write reinsurance business in excess of its equity capital. Furthermore, a rated reinsurer has even broader access to the reinsurance market, as some counterparties/cedents prefer to transact with traditional rated reinsurers rather than through alternative structures (like ILS Private Transactions or Cat Bonds).
The rated reinsurance company’s direct access to the market combined with the leverage possibilities makes this structure more cost-efficient than alternative structures. However, launching such a vehicle is capital-intensive and requires a robust business plan with strong origination, underwriting and risk-modeling capabilities as well as reliable governance structures in order to obtain a good rating.
A Lloyd’s syndicate is a member or group of members underwriting direct insurance and reinsurance business at Lloyd’s through a managing agency. Lloyd’s itself is comparable to a stock market for (re-)insurance business, and is also well known for non-natural catastrophe coverage, such as aviation, marine, and energy. The strong rating of Lloyd’s, together with the broad access to reinsurance and direct insurance markets around the globe, makes this market an attractive prospect.