Reinsurers braced for surge in ADC demand

The reinsurance community is expecting further demand for
adverse development covers (ADCs) as a combination of soft market
conditions, low interest rates and reserve adequacy concerns pushes
carriers to scrutinise their back books.
In the last six months there has been a flurry of high-profile
ADCs, with insurers including AIG, AmTrust, QBE, The Hartford and
RSA all turning to the reinsurance market to address their
needs.
In a greater push for capital optimisation and efficiency,
cedants have