The BRI and the need for its transit infrastructure protection against natural disasters

ORIGINAL PUBLICATION HERE

Countries in Central Asia and Eastern Europe that have been recipients of Chinese investment via projects associated with its Belt and Road Initiative (BRI) should use parametric sovereign cat bonds to insure themselves against the risk of natural disasters.

Belt and Road Initiative has created an even greater need for comprehensive protection solutions across Central Asia and Eastern Europe as China has spent tens of billions of dollars in infrastructure across the region but practically none of it is properly insured against physical damage, despite the region being at high risk of natural disasters with earthquakes in particular.

In countries such as Uzbekistan, Kazakhstan or Tajikistan it is not a question of if an earthquake will hit, but when—and how devastating it will be. In Western Balkans that is prone to earthquakes itself there is an additional threat of massive floods as climate change consequences.

La BRI et la protection des infrastructures contre les désastres naturels

PUBLICATION ORIGINALE ICI

Les pays d’Asie centrale et d’Europe de l’Est qui reçoivent des investissements chinois dans le cadre de l’initiative « Belt and Road » (BRI) pourraient être intéressés par l’utilisation d’obligations souveraines paramétriques pour se prémunir contre les risques de catastrophes naturelles.

L’initiative « Belt and Road » a créé un besoin important de solutions de protection complète en Asie centrale et en Europe de l’Est, car la Chine a investi des dizaines de milliards de dollars en infrastructures dans ces régions, mais la plupart de ces projets ne sont pas correctement assurés contre de possibles dommages, bien que  ces régions présentent des risques de catastrophes naturelles en particulier des tremblements de terre.

Dans des pays comme l’Ouzbékistan, le Kazakhstan ou le Tadjikistan, il ne s’agit pas de savoir si un tremblement de terre va se produire, mais quand et à quelle intensité il se produira. Les Balkans occidentaux qui sont eux-mêmes sujets aux tremblements de terre, sont aussi sous la menace d’inondations massives en raison du changement climatique.

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.

Protectionist trends a “significant barrier” for European re/insurers: Insurance Europe

ORIGINAL PUBLICATION HERE

The use of protectionist measures in emerging countries remains a “significant barrier” to the ability of European re/insurers to place business in these regions, according to Insurance Europe.

In a recent report, the European insurance and reinsurance federation highlighted concerns about protectionist trends in a number of high growth potential markets.

For example, in Indonesia, Insurance Europe pointed to mandatory cession requirements, particularly in light of the establishment of Indonesia Re, as well as a worrying life insurance tax issue.

It claimed that local compulsory cessions diminish the possibility to diversify risk, creating high local exposure in the event of large losses, such as from natural disasters.

Growth in protectionism & geopolitical tensions to impact re/insurers: Marsh

ORIGINAL PUBLICATION HERE

Rising geopolitical tensions and protectionist sentiments, in combination with ongoing trade disputes, and resulting in increased uncertainty and risk for multinationals such as re/insurers, according to Marsh, particularly for those with direct foreign investments.

Marsh’s Political Risk Map 2019 rated more than 200 countries and territories on the basis of short and long term political, economic, and operational stability to provide insight into where risks are most likely to emerge and where multinationals should deploy financial resources.

Using data from Fitch Solutions, Marsh observed a transition to a more multi-polar world order of protectionism that is likely to continue through 2019, with isolationist practices rising in some countries and temporarily slowing the progress of globalisation.

CIS re/insurers struggling to withstand volatile market conditions: A.M. Best

ORIGINAL PUBLICATION HERE

Insurers and reinsurers in the Commonwealth of Independent States (CIS) are struggling to remain profitable in the face of significant geopolitical instability and regulatory changes, according to a report by A.M. Best.

The rating agency noted that, whilst the overall economy for the CIS improved in 2018 compared to prior years, challenges remain for the insurance sector, with more than a third of companies receiving long-term issuer credit ratings of ‘bb+’ or below.

A.M. Best rates a number of companies based in Kazakhstan, Russia and Azerbaijan, and monitors insurance and economic trends in other CIS countries, which include Armenia, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

Open global trade remains the way ahead

ORIGINAL PUBLICATION HERE

Senior official calls on nations to ‘inject new strength into the world economy’

China has called for an open global business environment and reiterated its commitment to further encourage outbound investment from capable domestic companies in accordance with international market principles and practices, a senior commerce official said on Tuesday.

Qian Keming, vice-minister of commerce, said the rise of protectionism in some countries has not only caused tightened security reviews of foreign investment, but also had an impact on Chinese businesses operating overseas.

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.