Offshore hedge funds are muscling-in on reinsurance opportunities, according to broker Jardine Lloyd Thompson (JLT).
The hedge funds, often based in outposts like Bermuda, are participating in property catastrophe reinsurance programmes, the company said in its annual market report.
And they are often able to undercut traditional insurers due to limited overheads and lower expectations of returns.
“At current levels, there are no immediate signs that this new capacity will have an impact upon pricing,” JLT said.