Protecting the Belt & Road

ORIGINAL PUBLICATION HERE. PDF VERSION HERE

China’s Belt and Road Initiative, the economic project which aims to recreate the ancient Silk Road that linked Europe to Asia, needs protecting. ILS could provide the perfect solution, as Kirill K. Savrassov, chief executive of Phoenix CRetro Reinsurance Company, tells Bermuda:Re+ILS.

In September a 5.8 magnitude earthquake shook Istanbul, triggering the evacuation of schools and public buildings and damaging buildings. The same week, a 5.8 magnitude event killed 38 people and caused massive damage to infrastructure and roads in north-eastern Pakistan.

For Turkey it represented a stark reminder of how bad these events can be. In 1999, a 7.4 magnitude earthquake in the western part of the country killed more than 17,000 people.

Cat bonds can meet Silk Road need: PhoenixCRetro

ORIGINAL ARTICLE IN PDF HERE. MONTE-CARLO TODAY DAY 4 MAGAZINE HERE (EMAG)

There is a potentially big opportunity for the insurance-linked securities (ILS) markets to develop parametric cat bonds that could cover some of the growing risks in Eastern Europe and Western areas of Asia, according to Kirill Savrassov, chief executive of PhoenixCRetro.

Savrassov told Monte Carlo Today that for a wide range of historical reasons insurance penetration remains very low in various countries of the former Soviet Union, as well as Turkey and parts of former Yugoslavia. Those areas are highly vulnerable to earthquakes, such as the ones that devastated Armenia and Tashkent over the past 50 years.

Savrassov pointed out that a huge amount of investment is being poured into the region by the Chinese government, which is seeking to expand its economic footprint with its Belt and Road Initiative, an economic project to essentially recreate the ancient Silk Road that linked Europe to Asia.

Has the time come for Indian CAT bonds?

ORIGINAL PUBLICATION HERE. PDF VERSION HERE

Excellent management of cyclone Fani by the eastern Indian state of Odisha has become a text book example of how to manage natural catastrophes although the government is now faced with the task of post-disaster reconstruction. With low insurance penetration, the question of using capital markets as a means of risk transfer merits attention.

How Do You Save a Million People From a Cyclone? Ask a Poor State in India’ – the headline in the New York Times of 3 May 2019 was very apt.

Indeed, Odisha, a poor eastern coastal state in India, home to about 42m as per 2011 census with an average income of less than $5 a day, was battered by an extremely severe cyclonic storm Fani on 3 May 2019, but Odisha’s management of the event has been hailed as a classic text-book example of how best to manage a natural disaster.

Страховые Ценные Бумаги обладают огромным потенциалом в рамках инициативы “Один пояс, один путь” (ОПОП)

ОРИГИНАЛЬНАЯ ПУБЛИКАЦИЯ ЗДЕСЬ. Версия в PDF ЗДЕСЬ

При ожидаемой стоимости в триллионы долларов и планах по развитию в 68 странах на 3-х континентах, инициатива «Один пояс, Один путь», естественным образом привлекает внимание всех участвующих сторон, как в государственном, так и частном секторах. Asia Insurance Review побеседовал о способах трансфера рисков в данном проекте с Кириллом Саврасовым, Главным Исполнительным Директором специализированной Бермудской компании Phoenix CRetro, фокусирующейся на развитии Страховых Ценных бумаг в регионе ECIS (Западные Балканы, Южный Кавказ, Восточная Европа, Центральная Азия и Турция).

Китайская инициатива «Один пояс, Один путь», является одним из крупнейших инфраструктурных проектов в современной истории человечества. По словам Кирилла Саврасова, руководителя Phoenix CRetro: “В силу масштабности и географического разнообразия, проекты имеющие отношение к ОПОП, безусловно, сталкиваются с многочисленными вызовами и рисками, и для их основоположников и для участников»

Текущие оценки по претворению проекта в жизнь варьируются от 900 млрд. до нескольких триллионов долларов, при основой финансовой нагрузке и работами, осуществляемыми государственными предприятиями.

保险链接债券在一带一路倡议中有潜力

原文的文章在这里PDF版本在这里PDF IN ENGLISH HERE. ПЕРЕВОД НА РУССКИЙ ЗДЕСЬ

由于成本预估将超过好几万亿美元,主要设施发展遍及三个大陆上涉及到68多个国家,因此中国的“一带一路”倡议很自然地吸引各种会员国家和工商界的注意。《Asia Insurance Review》采访了专门关注欧洲与独联体国家区域的百慕达Phoenix CRetro保险连接证券公司总裁吉里尔·萨符拉索夫(Kirill Savrassov)商量保险连接证券作为“一带一路”倡议的风险转移选择。

作者:阿努普·哈娜(Anoop Khanna)

中国的“一带一路”倡议应该是现代人类历史上最大的基础设施发展方案之一。Phoenix CRetro Reinsurance公司总裁吉里尔·萨符拉索夫(Kirill Savrassov)指出,“由于其规模和地理的多样化,一带一路相关的项目肯定面临着各种挑战和风险,无论是方案倡议者和其他的所有参与者”。目前该方案实现评价范围在九千亿至几万亿美元,其中最大的金融压力和工作由国有企业承担。

ILS potential within Belt and Road Initiative

With its cost estimated to run into trillions of dollars and main developments spread over 70 countries in three continents, it is natural for China’s belt and road initiative to be in the spotlight of all participating countries and business sectors. As there are massive infrastructure investments in both China and many more nations including its neighboring countries, the (re)insurance industry, together with insurance-linked securities (ILS) community will have its own multi-task opportunities and challenges with regards to the BRI projects. Parametric reinsurance and particularly ILS risk transfer instruments are exact solutions for such issues at the sovereign or provincial government levels.

Should India transfer its catastrophe risks to capital markets?

ORIGINAL PUBLICATION HERE

The coastal Indian state of Kerala suffered an estimated economic loss of $4.5bn due to the floods that ravaged the state in August this year. Kerala has demanded that the federal Indian government provide additional resources to rebuild the state’s damaged infrastructure.

Kerala’s demand for additional resources has initiated a debate about how to make additional resources available for such relief and reconstruction activities in the aftermath of natural catastrophes, especially when the level of insurance penetration is extremely low. The insurance penetration in Kerala is estimated to be even below the national average for India.

Bermuda regulator looks for greater clarity on ILS underwriting

ORIGINAL PUBLICATION HERE

The Bermuda Monetary Authority (BMA), the financial regulator on the island, is requesting a more granular level of detail on activities involving alternative reinsurance capital and insurance-linked securities (ILS) underwriting, seeking detail on any re/insurance business financed by directly capitalised mechanisms.

The BMA has published what it calls its “Alternative Capital Schedule” which will be applicable to all re/insurers operating alternative capital vehicles or structures.

R&Q partners with AXA for Hamilton RITC

ORIGINAL PUBLICATION HERE

Bermudian-domiciled Hamilton Insurance Group has appointed legacy specialists Randall & Quilter (R&Q) to reinsure its Lloyd’s run-off book that it inherited when it acquired Sportscover managing agency in 2015.

R&Q has reached an agreement with Hamilton Underwriting Limited to provide capital, in conjunction with AXA DBIO (Discontinued Business Investment Opportunities), to support the Reinsurance to Close (RITC) of Syndicate 3334’s 2014 and prior years of account.

Paradise Papers: The rest of the story

ORIGINAL PUBLICATION HERE

 

Amid the hype of this month’s “Paradise Papers,” some key ingredients have gone missing—the rest of the story.

The insidious campaign, waged by the International Consortium of Journalists (ICIJ) using data from an illegal hack of Appleby, is well-choreographed and evidently well-funded. Indeed, one speculates how such monies could have been better spent.