Blockchain’s future in insurance takes shape

by with No Comment BlockchainCyberInsurTechIntelligent Insurer

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The re/insurance industry holds high expectations for blockchain technology as an opportunity to increase efficiency of insurance processes, and the future is beginning to take shape with the launch of new platforms and products. Intelligent Insurer reports.

Blockchain, also dubbed distributed ledger technology, is the technology behind digital currencies such as Bitcoin and is praised for the fact that it creates a secure ledger of information that prevents the unauthorised modification, addition or removal of data.

As blockchain systems are immutable and do not require oversight by a central authority, one of the advantages of this technology is that it opens up new options for secure collaboration between competitors by removing the need for trust between third party organisations.

A way to reduce the protection gap: CCR

by with No Comment Colleagues & NewcomersECIS CAT BondsILSInsurance GapIntelligent InsurerUN-World Bank-IFCWeather Risk Transfer

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The risk transfer industry understands that more could be done to close the protection gap, and more risk pools linked to governments could help solve this problem, argues Laurent Montador of French reinsurer CCR, which is backed by the French government.

Re/insurance pools, whether governmental or private market-driven, are usually created involving public and private stakeholders either to resolve disruption in the re/insurance supply or to mitigate the threat of unaffordable insurance, especially for complex or high-value perils, such as natural catastrophes, terrorism, war, aviation, pollution, nuclear or energy, for commercial lines and personal lines in P&C, but also in the life, and accident & health sectors.

Swiss Re eyes growth in Europe

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The protection gap in Europe remains large in many countries—but this is where growth can be generated for reinsurers as governments look to solve this challenge, as Claudia Cordioli of Swiss Re tells Baden-Baden Today.

There is plenty of growth opportunity in Europe for the re/insurance sector as certain governments are warming up to the idea of cooperating with the private sector to offer catastrophe risk solutions to their populations, according to Claudia Cordioli, head of reinsurance for Western & Southern Europe at Swiss Re.

Parametric cat bonds the best option

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Parametric cat bonds can help the countries of South Eastern Europe, Central Asia, Caucasus, The Commonwealth of Independent States as well as Turkey (ECIS) cope with the protection gap in natural catastrophe risk, Kirill Savrassov, CEO of Phoenix CRetro, a niche Bermudian ILS specialist, told Baden-Baden Today.

“With low insurance penetration (less than 2 percent), reinsurance protectionism and growing climate change consequences, the countries of ECIS region really need to address disaster risk transfer with the use of all available alternative instruments and that is where ILS market definitely has something to offer,” said Savrassov.

He noted that the region has historically been home to a number of risk, with earthquakes being the most devastating. Between 2005 to 2014, the region suffered 314 natural disasters event affecting over 11 million people and causing over 60,000 deaths.

ILS investors, funds, buyers all now regard ILS as mainstream: Willis report

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End investors, ILS funds, and buyers – the three groups active in ILS – have predominantly weathered 2017 loss activity with a view that reinsurance products backed by ‘alternative’ capital have become mainstream, according to a new Global ILS Market Survey by Willis Towers Watson.

The survey of all three constituents of the ILS market was conducted more than six months after the major 2017 losses. Responses are therefore informed by the crystallisation of ILS funds’ performance, the report noted.

Cedants and funds share the view that ILS will continue to grow, partly through increased usage, and partly by covering risks outside property catastrophe, such as property per-risk, cyber, and marine. Investors and cedants alike continue to show appetite for such transactions.

指数巨灾债券是优质选择

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2018年10月22日 Intelligent Insurer 原始采访译文。 PDF版本在这里。

指数巨灾债券可以帮助东南欧，中亚，高加索，独联体以及土耳其等国家和地区应对自然灾害风险的保障缺口。Phoenix CRetro首席执行官基里尔·萨夫拉索夫（Kirill Savrassov）是一个富有经验的百慕大保险链接债券（Insurance-linked securities, ILS）专家，今日巴登巴登报对其进行了专访。

鉴于低保险深度（低于2％），再保险贸易保护主义和日益严重的气候变化等诸多因素，独联体国家需要通过替代工具来转移灾害风险，这正是保险链接债券（ILS）市场确实可以解决的。

他指出该地区历来饱受自然灾害之苦，其中地震是最具破坏性的。在2005年至2014年期间，该地区发生314起自然灾害事件，影响了1100多万人并造成6万多人死亡。这些事件造成了约250亿美元的经济损失，但却很少有保险承保。萨夫拉索夫补充说：“自然灾害对我们的影响不仅是其造成的死亡和伤害，还会对幸存者和国家造成持久的经济影响。自然灾害不只破坏家园和田地，甚至阻碍多年的经济增长。“

联合国国际减灾战略署在新发布的报告《1998-2017年经济损失，贫困和灾害》中评论了自然灾害对中低收入国家的影响。报告指出气候变化在引发世界各地的灾害损失方面发挥着越来越重要的作用，这种情况在未来很可能一直持续下去。尽管富裕国家承担着更大的经济损失，但灾害对低收入和中等收入国家造成的影响是不成比例的。由于缺乏灾难导致发展中国家经济损失的分析，这意味着报告中引用的数据只是“冰山一角”。

Multi-cat bonds can meet ECIS demand

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Multi-cat bonds or other ILS solutions are the only viable solution for coping with natural disasters in the Eastern European and Commonwealth of Independent States region, and Bermuda could have a big role to play in making this happen, says Kirill Savrassov, chief executive of Bermuda-based Phoenix CRetro Reinsurance.

The human cost of natural disasters is measured not just in the deaths and injuries they cause, but also in terms of their lasting economic impact on survivors and countries. Natural disasters don’t just destroy homes and fields; they can altogether annihilate years of economic growth.

Мульти-катастрофические облигации способны удовлетворить спрос региона ECIS (Западные Балканы, Южный Кавказ, Восточная Европа, Центральная Азия и Турция)

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ОРИГИНАЛЬНАЯ ПУБЛИКАЦИЯ ЗДЕСЬ

Мульти-катастрофические облигации или другие решения из области Страховых Ценных Бумаг (ILS) являются наиболее действенным решением для финансирования последствий стихийных бедствий в Восточной Европе и СНГ, при этом Бермуды могли бы сыграть большую роль в их внедрении и развитии, говорит Кирилл Саврасов, Главный исполнительный директор Phoenix CRetro Reinsurance, расположенной на Бермудах.

Цена природных катастроф измеряется не только унесенными жизнями и причиненными увечьями, но и долгосрочным экономическим воздействием как на выживших, так на целые страны. Природные катастрофы не просто уничтожают жилища и посевы, но и совокупно могут «украсть» годы экономического роста.

New models become a game-changer

by with No Comment ILSIntelligent InsurerModdelingParametricRussian CAT BondsUN-World Bank-IFCWeather Risk Transfer

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The impact of flood risk keeps rising, affecting more people worldwide than any other type of natural disaster. As flood models improve, the industry has a big opportunity to make a tangible difference to society—but collaboration and teamwork will be key, says Edouard Schmid at Swiss Re.

Fifty years ago, Swiss Re published the first issue of its flagship report sigma. The publication has since become a must-read source of information on natural catastrophe risk for the insurance industry.

The initial idea behind sigma was born in the wake of the 1965 Hurricane Betsy, which caused extensive flooding across the state of Florida and the US Gulf Coast. The resulting damage exceeded $1 billion—an unprecedented loss from a single storm event. The insurance industry was caught off-guard.

Talent to take ILS to new level

by with No Comment CAT BondsColleagues & NewcomersILSILS Funds/strategies launchIntelligent InsurerPension & Hedge Funds

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The London Market has the potential to broaden the scale and scope of the insurance-linked securities (ILS) markets by using its unique talent pool to help introduce new perils and bring new sponsors into the sector, Des Potter, managing director of GC Securities, told Monte Carlo Today.

Potter said that one of the motivations for establishing the new legislation was not simply to introduce an ILS capability into the London Market for the first time, but also to leverage the huge talent in the market to better support reinsurance and specialty insurance risk transfer.