How to close Asia’s insurance protection gap


Asia will drive the growth of the global insurance market in the years to come. Technological innovation along with solid financing and the right policies will be needed to make sure as many people as possible in the region get the insurance protection they need.

The demand for insurance in Asia in the coming decade will be shaped by rising household income levels of a rapidly expanding middle-class, policy measures to accelerate financial inclusion, and strengthening social protection and government insurance programs.

Governments are also increasingly making businesses, households, and individuals responsible for managing the adverse financial consequences of risks to assets, lives, incomes, and livelihoods.  One can, therefore, expect increased spending on buying protection and an expanding role for the insurance and capital markets to manage contingent liabilities better. The same holds for access to medical care, which will be spurring demand for health insurance.

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Alphabet’s (Google’s) first catastrophe bond priced on-target at $237.5m


The first catastrophe bond to be sponsored directly for the benefit of Alphabet, Inc., the holding company for Google and its many units, has now been priced on-target at the mid-point of guidance, while the Phoenician Re Ltd. (Series 2020-1)  cat bond transaction will close at the same $237.5 million size it launched at.

Alphabet, which acts as a holding company for all of the Google tech operations, entered the catastrophe bond market for the first time earlier this month, seeking a capital markets backed solution to secure more earthquake insurance protection for its assets in the state of California.

The technology giants, such as Google, Amazon, Facebook and Microsoft, among others, all carry significant exposure to catastrophe, severe weather and climate risks on their books.

The Case for Deploying Enterprise Architecture in ILS


Does innovation receive the attention it deserves in your company? Are you able to scale your business? Do you have business ideas but don’t see how IT can support or enable them? If so, this article is definitely for you!

ILS managers are technology companies that happen to work at the intersection of (re)insurance and capital markets. Such a statement is increasingly adopted by companies seeing innovation as a key driver of their comparative advantage. Whether this involves creating new business products or business models, innovation and technology must be central to strategy and managed as a fundamental capability.

To gain such a competitive edge, ILS managers need a front-footed, strategically aligned innovation and technology organization. In reality, however, many lack such an organization, and experience significant challenges in their IT architecture that detract from the desired strategy instead of reinforcing or even shaping it. What is needed is the capability to manage the company’s IT assets and drive the discovery and adoption of innovative solutions that advance the business strategy.

Lloyd’s launches ‘first of its kind’ parametric BI cover for SMEs


Lloyd’s has launched a new business interruption policy, which it believes is the “first of its kind” parametric solution designed to protect small and medium sized enterprises (SMEs) against IT disruption or downtime.

The new policy pays out automatically once a company’s IT services – such as cloud, e-commerce or payment systems – are disrupted, reducing the time insurers spend assessing a loss or adjusting a claim.

The product is led by Tokio Marine Kiln (TMK) and supported by other members of Lloyd’s Product Innovation Facility including RenaissanceRe.

“We are thrilled to launch the first ‘off-the-shelf’ parametric insurance product for IT downtime. This is a great milestone for us and we are grateful to TMK, Howden and Lloyd’s Product Innovation Facility for helping us to develop our product and providing us with valuable insights and support along the way,” said Yonatan Hatzor, co-founder and CEO of Parametrix Insurance.

InsurTech-2019: итоги и прогнозы на 2020 год


Международные инвестиции в InsurTech растут практически в геометрической прогрессии. Они уже превысили $4,4 млрд и могут достичь $6 млрд. Это почти в два раза превышает итоги 2018 года. Денис Гаврилов, директор по развитию бизнеса в страховании ИТ-компании КРОК, рассказывает, в какие технологии и компании инвесторы вкладывают такие существенные суммы, что происходит в России и чего ждать от 2020 года.

Мировая практика

По данным Willis Towers Watson, в 2019 году 239 иншуртех-компаний и проектов привлекли инвестиции в общей сумме на $4,36 млрд (около 310 млрд рублей). Лидирующим целевым рынком для привлечения инвестиций в иншуртех-проекты остаются США (с долей чуть менее 50%), за ними следует Великобритания (около 10%). Наиболее активно растут инвестиции в Китай (с 0% до порядка 10% в 2019 году).

Is the ILS market ready to tackle cyber?


A lack of historical and contextual data continues to hinder the entry of the insurance-linked securities (ILS) market into the cyber re/insurance space, and with ‘silent’ cyber exposures adding further uncertainty, it might be easiest for the ILS sector to focus on affirmative cyber, at least to begin with.

This is according to Co-Head of Property Claim Services (PCS), Tom Johansmeyer, who recently spoke with Artemis about the ongoing and developing NotPetya cyber-attack and the potential for ILS to participate in the expanding cyber risk market.

With an economic impact of at least $10 billion, according to the White House, and insured losses of at least $3 billion, according to PCS, the NotPetya cyber catastrophe event remained mostly a property event for the first two years of development.

Insurtech: slogan, bubble or revolution?


The re/insurance world has been grappling with the possibilities posed by insurtech for some years, but is it just a slogan, or a bubble that will burst, or is there something more tangible emerging? Bermuda:Re+ILS investigates.

Insurtech is a word that gets a lot of people very excited, as a possible game-changer for the re/insurance industry. Indeed, the use and benefits of technology in the world of re/insurance have been mooted for many years.

There have been several false dawns in places such as Lloyd’s, as innovation came up against tradition, but recent developments have seen more optimism about technology’s use in the market.

Insurtech and technological advances offer growth opportunities for the global mutual insurance sector


Representatives of A.M. Best presented a macro view of all the technological advances that will likely have a significant impact on the global insurance industry during “The next 25 years in insurance” webinar organized, at the end of March, by ICMIF – International Cooperative and Mutual Insurance Federation.

Talking about the potential disruption brought by technology, Andrea KEENAN, Senior Managing Director, Industry Relations, A.M. Best exaplained that, contrary to the general belief, “so many Insurtech have technology that is meant to enable insurance company, not disrupt them. Some companies have very clever underwriting techniques and some of them might become carriers themselves. The biggest disruption is happening at the intermediary phase: new underwriting services, new claims services. The insurance companies really have to look into these new technologies and pay attention to the cost savings that their competitors are going to be taking on.”

Solidum issues $12m private catastrophe bond using ILSBlockchain


Solidum Partners, the Swiss specialist insurance and reinsurance linked investment manager, has completed a $12 million Jungfrau IC Limited 2019 private catastrophe bond issuance, which is the fourth to use the firms blockchain system.

Solidum Partners became the first in the world to create and settle a securitised catastrophe reinsurance contract using the private blockchain in 2017, which it named the ILSBlockchain.

This is now the fourth issuance of private cat bond notes on this blockchain system, with the total amount of catastrophe bond securities on this blockchain now sitting at $50.1 million.

This $12 million issuance is the first 2019 catastrophe bond to be issued using the blockchain. It was issued in January.

Parametric MGA Descartes Underwriting hires ILS specialist Le Roux


Descartes Underwriting, the start-up insurance technology (insurtech) managing general agency (MGA) that focuses on parametric and data-driven risk transfer products, has hired Edern Le Roux, an ILS specialist previously from SCOR Investment Partners.

Descartes Underwriting launched recently with an ambition to utilise the insurance-linked securities (ILS) market as a source of capacity for its parametric insurance and reinsurance risk transfer products.

Hiring Le Roux gives the firm expertise and connections in the ILS investment sector, which will help it in achieving this ambition as it begins to build out a portfolio of risk.