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Direct-to-consumer insurtech company Kin Insurance is back in the catastrophe bond market to sponsor its third issuance, seeking $200 million or more in Florida named storm protection from this Hestia Re Ltd. (Series 2025-1) transaction.

Kin had secured its debut $175 million Hestia Re Ltd. (Series 2022-1) catastrophe bond cover back in April 2022.

The company then followed that up with a $100 million Hestia Re Ltd. (Series 2023-1) issuance in March 2023.

Kin’s 2022 Hestia Re cat bond remains marked down around 10 points in secondary broker pricing sheets, on exposure to potential losses from hurricane Ian. But it is due to mature in April this year, so it will be interesting to see if that transaction draws to par, or is extended to allow for further development.

Kin returns to replace some of that coverage and is seeking what could become its largest catastrophe bond yet, having an initial $200 million target, we’re told.

Hestia Re Ltd., Kin’s Bermuda-based special purpose insurer (SPI), will look to issue two tranches of Series 2025-1 notes, preliminarily targeting $200 million in size, with these notes set to be sold to investors and the proceeds used to collateralize a reinsurance agreement between the SPI and ceding company.

The cedent is initially the Kin Interinsurance Network, but Kin will be able to add additional covered cedents should it introduce further underwriting entities during the term of the cat bond.

Both tranches of notes will provide Kin with a three hurricane season source of fully-collateralized Florida named storm reinsurance, on a indemnity trigger and per-occurrence basis, with cover running from June 1st this year to three years after the issuance completes, sources said.

A currently $100 million of Hestia Re Series 2025-1 Class A notes would attach at $605 million of losses and exhaust at $805 million, we understand.

That gives the Hestia Re 2025-1 Class A notes an initial attachment probability of 1.70% and an initial base expected loss of 1.51%, while they are being offered to cat bond investors with price guidance in a range from 7.25% to 8%, sources said.

An also $100 million Class B tranche are riskier, having an attachment point at $405 million of losses and an exhaustion point at $605 million.

Which gives the Hestia Re 2025-1 Class B notes an initial attachment probability of 2.54% and an initial base expected loss of 2.03%, while they are being offered to cat bond investors with price guidance in a range from 8.25% to 9%, we are told.

We are told that due to inuring reinsurance from other sources, an effective first-event attachment for the notes will be at around $678.6 million for the Class B notes and $878.6 million for the Class A notes.

The multiples on offer with this new cat bond from Kin could end up lower than its debut cat bond, the ranges of spreads on offer imply.

Recall that, Kin’s first Hestia cat bond from 2022 priced to pay investors a multiple of 4.8 times the expected loss, but then Kin’s 2023 cat bond which was less risky priced to pay investors an almost 9.4 times multiple of expected loss.

In this case, the Series 2025-1 Class A notes would be close in multiple terms to the 2022 deal at the mid-point of guidance, but the riskier Class B tranche could result in a lower multiple, it seems.

You can read all about the Hestia Re Ltd. (Series 2025-1) catastrophe bond from Kin and every other cat bond deal issued in our extensive Artemis Deal Directory.

Kin targets its largest Florida wind cat bond yet, $200m Hestia Re 2025-1 was published by: www.Artemis.bm
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CatX, the digital catastrophe and parametric risk exchange company, has announced the launch of its AI-powered Catamaran Parametric platform, which has been designed to streamline the complexities of parametric protection for investors.

“Designed to simplify the complex world of parametric protection, Catamaran Parametric guides users of any experience level step-by-step through risk identification and analysis. From initial risk exploration to final protection structure, the platform transforms what was once a manual, time-consuming process into an intuitive, data-driven experience,” CatX explained.

One of the most interesting features of CatX’s new parametric platform is that it will allow users to generate detailed risk reports that are tailored towards their specific risk types.

“This feature provides organizations with a 360-degree view of their risk landscape, uncovering insights that traditional assessment methods might miss,” CatX added.

In addition, CatX revealed that the platform’s AI engine analyses real-time and historical data across an unmatched range of perils, including hurricanes, droughts, severe storms, earthquakes, and temperature events.

By integrating data from meteorological services, users will be able to gain unprecedented insight into risk patterns and potential exposures. Catamaran Parametric’s interactive visualizations also lets users explore everything from hailstone sizes to hurricane wind fields, using colour-coded maps and charts to make complex risk profiles more understandable, CatX added.

Additionally, by using a wizard tool, the platform can also guide users through creating custom protection structures using multiple trigger types and flexible exposure definitions.

CatX also explained that by using its AI-powered platform, users will be able to define event parameters through interactive polygon mapping, as well as review historical data ranges and compare parametric triggers against traditional indemnity structures.

Another notable feature is that the platform can connect users with over 50 different institutional investors and alternative capital providers within the insurance-linked securities (ILS) market.

Benedict Altier, Chief Executive Officer at CatX, commented: “Parametric insurance has tremendous potential, but modelling complexity has been a significant barrier to entry. Our platform breaks down those barriers, making sophisticated risk analysis accessible to both seasoned professionals and those new to parametric protection.”

Lucas Schneider, CTO of CatX, said: “Our technology sets a new standard in parametric exploration. Leading brokers have already licensed our platform, validating our approach to reducing manual efforts while enhancing analytical precision. We are also committed to building in public by sharing key parametric features through an open-access platform.”

Since CatX launched Catamaran as a standalone offering in May last year, the platform has reportedly gained traction among reinsurers, funds and brokers.

“The platform complements CatX’s existing partnerships with premier insurance modeling companies, providing new ILS investors with comprehensive submission and risk analysis capabilities,” the firm added.

It’s also important to note that the launch of Catamaran Parametric takes place during a time where the ILS market is experiencing growing demand for parametric solutions, amid rising traditional insurance costs.

“The platform’s ability to facilitate shorter cover periods, simplified modeling, and faster capital deployment makes it especially attractive to new entrants in the insurance-linked securities space,” CatX concludes.

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With a widening crisis protection gap evident around the world there is a need for a transformational expansion in the use of insurance and reinsurance mechanisms to transfer risks to the capital markets, according to a report from the High-Level Panel on Closing the Crisis Protection Gap.

The report calls for a tenfold increase in the proportion of international crisis finance that is pre-arranged by 2035.

Here, insurance and risk transfer are called out as examples of pre-arranged crisis financing that can serve to transfer financial risks away from public balance sheets, into the private and capital markets.

“In a world where risks can be modelled with ever greater precision, we should not wait to react until a crisis occurs,” explained Co-Chair of the High-Level Panel Sir Mark Lowcock, a former United Nations Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator. “Nor can millions of people in vulnerable communities be left dependent on underfunded, ad hoc financial appeals where more effective financing instruments exist.”

Out of the $76 billion spent on crisis finance in 2022, below 2% of this was prearranged, according to research by the Centre for Disaster Protection, while just 1.4% of that reached low-income countries.

Highlighting the scale of the gap that requires financing, the report explains that annual global economic losses from unmitigated climate change are projected to range between $7 trillion and $38 trillion by 2050.

As a result, “The High-Level Panel is calling for a transformation in the level of effort dedicated to transferring risks from public balance sheets to capital markets.”

“With human and economic costs already mounting, the world cannot afford to continue treating crises as unexpected surprises,” said Arunma Oteh, Co-Chair of the High-Level Panel and a former World Bank Vice President and Treasurer. “This is not just about the quantity but also the quality of finance which is being provided. Reactive funding is too slow, too costly, and leaves the world needlessly exposed. Prearranged finance must become the default for all predictable and modellable crises, not the exception.”

The High-Level Panel explains that it is, “unequivocal that all forms of insurance are central to this transformation.

“With projected crisis costs projected even conservatively in the trillions annually by 2050, capital markets hold relatively untapped potential for securing essential public assets like roads, hospitals, and power grids, and for transferring enormous financial risks away from public balance sheets.”

Adding that, “The High-Level Panel considers options for pre-arranged financing to be becoming more feasible and applicable due to recent technical advances in financial technology, risk transfer instruments, and risk modelling, but their use is not yet growing commensurately.”

The evolution of the insurance and reinsurance industry, including the development of insurance-linked securities (ILS) instruments such as catastrophe bonds, are seen as key for delivering the pre-arranged crisis financing that is required.

“The High-Level Panel considers options for pre-arranged financing to be becoming more feasible and applicable due to recent technical advances in financial technology, risk transfer instruments, and risk modelling, but their use is not yet growing commensurately,” the report explains.

Instruments such as catastrophe bonds, “provide governments with immediate liquidity in the wake of a disaster, enabling rapid response without destabilizing national economies.

“Much of this innovation is driven by parametric insurance, where payouts are triggered by specific data points (e.g., wind speed or rainfall levels), eliminating the delays of traditional claims processes.”

At the same time, indemnity structures are also evolving, while blended finance approaches are securing contingent financing for those exposed to crises such as climate risks.

“This growing sophistication is helping to support long-term community resilience, reduce economic and social disruptions caused by disasters, and build stronger frameworks for managing crises effectively,” the report states.

There’s a clear role for insurance-linked securities (ILS) mechanisms as a structure for transferring crisis related risks to the capital markets, while insurance and reinsurance product design and techniques can be leveraged with the help of private market participants as well.

Of course, none of this is new or groundbreaking and we’ve been calling for greater use of capital markets structures and infrastructure, alongside risk transfer technology, to close the still-widening insurance protection gap for over two decades now.

What’s needed are concerted efforts to put the onus on protection of lives, communities, livelihoods and economic activity for economic actors, with a focus on ensuring governments and corporations around the world take some greater level of responsibility for the financial exposure their respective constituents face due to crises.

The insurance, reinsurance and ILS industries are always available to help in delivering risk transfer solutions, but there needs to be buyers of protection and markets for risk.

These just don’t exist meaningfully currently, in the areas of the global economy where financial impacts of crises go uncovered. As there is no onus on those generating, deriving, or extracting economic value to account for these risks and put in place more meaningful protection of their constituents and dependents.

Transformational expansion of risk transfer to capital markets needed to finance future crises was published by: www.Artemis.bm
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The stable return profile of catastrophe bonds and their historically low correlation with broader financial markets have traditionally been the main reasons investors considered an allocation of cat bonds into their portfolio, however, more recently, investors have started recognising catastrophe bonds for their social impact, as per a new report from the Man Group.

According to the firm, a “new breed” of cat bonds has now emerged, aimed at preventing disaster and extending coverage for low-income countries unable to mobilise proper financing to fight a looming disaster.

The UN reportedly defines resilience as the “ability of a system, community or society exposed to hazards to resist, absorb, accommodate to and recover from the effects of a hazard in a timely and efficient manner.”

The Man Group continued, “The cover that catastrophe insurance provides sits firmly within this definition.

“Not only does it compensate for losses, but the use of parametric triggers can mean that payments are made more quickly than if actual losses had to be assessed (particularly in emerging markets where the claims process is generally less well developed).”

Continuing, “Now, cat bonds are also emerging as a socially responsible investment. For the insured risk, cat bonds provide an element of risk transfer back to investors.”

Man Group highlighted named storm cover for Jamaica, earthquake cover for the Turkish Catastrophe Insurance Pool, and the Pacific Alliance cat bonds as examples which illustrate how these insurance-linked securities (ILS) instruments can aid in building risk transfer resources and disaster resilience.

“As a sign of confidence in this asset class, the market capitalisation is growing at an impressive rate.

“New, innovative bonds are emerging as a very effective tool in providing a new kind of social benefit, while helping generate uncorrelated risk-adjusted returns for investors,” the firm’s report concluded.

Environmental, social and governance (ESG) investing remains a key area of focus for the insurance-linked securities (ILS) market and with the asset class ticking many boxes for a socially responsible mandate, investors are increasingly looking to understand the beneficial features of the cat bond instrument.

Cat bonds have emerged as a socially responsible investment: Man Group was published by: www.Artemis.bm
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COP 29, the United Nations Climate Change Conference held in Baku, Azerbaijan, has drawn to a close with agreement on certain areas and progress being made on the much-discussed Loss and Damage, as well as the Global Shield, two programs of some relevance to insurance, reinsurance and insurance-linked securities (ILS) markets.

While the COP29 meetings concluded with an agreement on financing amounting to $300 billion per-year for developing countries, concern has been raised over that figure falling far-short of the amount those nations believe is required to respond to the climate impacts they are already facing, as well as boost their readiness for and resilience to climate related exposures.

The Fund for Loss and Damage has been designed to help the countries that are most vulnerable to the adverse effects of climate change.

At COP29, agreement has been reached on fully operationalising the loss and damage fund, although there is still significant work to do on the finer details of how support and financing will be delivered.

Working with the Board of the loss and damage fund and the World Bank, the COP29 Presidency said it has advanced measure to operationalise the fund, while also appointing former Group Director General of the parametric risk pooling and parametric insurance facility, African Risk Capacity (ARC), Ibrahima Cheikh Diong as the Fund’s Executive Director.

In addition, key documents were signed at COP29, including a “Trustee Agreement” and “Secretariat Hosting Agreement” between the Fund for Loss and Damage’s Board and the World Bank, as well as a “Host Country Agreement” between the Fund’s Board and the host country, which is set to be the Republic of the Philippines.

Financial support and commitments to the loss and damage fund now exceed $730 million, with the largest contributions made during COP29 coming from Australia and Sweden.

As a result, the COP29 Presidency said that the loss and damage fund is now “ready to distribute funds in 2025 by securing contributor agreements and pledges as well as signing the host country agreement with the Philippines and hosting and trustee agreements with the World Bank.”

As well as the commitments made to the Fund, it is still expected that once operationalised there will be work undertaken to identify whether and how private capital financing instruments also have a role, in financing climate related loss and damage for the most vulnerable and developing nations of the world.

As we’ve also explained in the past, the insurance, reinsurance and insurance-linked securities (ILS) markets have a role to play here, albeit further down the line, once agreement has been reached on financing instruments, tools, structures and how to actually disburse loss and damage fund capacity, are made.

We’ve highlighted the potential for there to be an important role for responsive risk transfer, such as risk transfer and insurance delivered through structures that utilise parametric triggers and risk-sharing systems have been a topic of discussion around loss and damage since the start.

With a former ARC executive now leading the Fund, it will be interesting to see how financing structures can be hybridised, to incorporate elements of risk transfer, to finance responses to future climate disasters, as well as the pure financing for mitigation and resilience that is expected to be needed.

Around the set-up and operationalising of the fund for responding to loss and damage, insurance and related risk transfer instruments have been broadly discussed as having a role to play.

The Fund’s Board has explored examples of risk pooling and parametric insurance, while also gaining an understanding of other risk transfer instruments, including catastrophe bonds.

Premium subsidies are seen as one use-case for financing from the loss and damage fund, although there is a lot of work to do around how any instruments that require premiums to be paid to private market actors are integrated within the overall loss and damage financing deployment.

Which leads us onto the second area of progress seen at COP29 that has relevance for the insurance, reinsurance and ILS community, the setting of a strategic direction for the Global Shield against Climate Risks.

The Global Shield against Climate Risks was launched after COP27, alongside the World Bank officially launching its Global Shield Financing Facility.

These two initiatives embed disaster risk financing techniques, in particular responsive risk transfer and anticipatory financing, at the heart of global efforts to build resilience to climate change and climate driven natural disaster events.

In 2023, the Global Shield Solutions Platform (GSSP) was also launched as a multi-donor grant facility and one of the core financing vehicles of the Global Shield, designed to help vulnerable countries effectively address loss and damage exacerbated by climate change.

Now, at COP29, a strategic direction has been set for the Global Shield initiative, with at least 17 countries targeted for its initial implementation and for specific activities to be taken.

Within the scope is parametric insurance and risk transfer, with use of these instruments expected to be scaled up under the Global Shield, while insurance-linked securities (ILS) such as catastrophe bonds still feature in Global Shield related texts.

At COP29, like previous conferences, the insurance and reinsurance industry was well-represented by key players and the efforts to embed insurance at the heart of climate financing discussions continues.

Efficiency, of risk transfer, and its responsiveness, as well as the efficiency of risk capital itself, will be critical for the future of such efforts.

But so too will investment in mitigation and structural innovation, to identify equitable ways to use the funding appropriately and to harness the appetite of private capital in support of climate financing and the broader climate transition.

Also read: Risk-sharing systems must be a pillar of Loss and Damage architecture: Report.

COP29 ends with Loss and Damage fund progress, strategic direction set for Global Shield was published by: www.Artemis.bm
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During the full-year 2023, the catastrophe bond and insurance-linked securities (ILS) team at private markets focused investment manager Schroders Capital allocated over US $817 million to transactions that specifically help in reducing the insurance protection gap.

Schroders Capital has quantified this area of impact that its cat bond and ILS investment management unit has been making for a recent report on the firm’s broader sustainability focus.

While it is clear that catastrophe bonds and insurance-linked securities (ILS), as an alternative mechanism for sourcing reinsurance capital, are inherently providing protection against disaster and enabling the insurance industry to better bear the risks it underwrites, Schroders Capital has categorised transactions it specifically feels are making a difference on helping to cover more uninsured economic losses.

The investment manager sees its capital making a difference, saying that if “managed carefully, can unlock… significant improvement potential for people and planet.”

One area is in driving increased availability of insurance and reinsurance protection, specifically, “through increased climate insurance coverage in emerging markets, private equity or via ILS cat bonds.”

Schroders Capital further explained, “In 2023, only 40% of losses resulting from natural disasters globally were covered by insurance, leaving a value of US$172 billion uninsured.

“Our ILS team works to reduce this protection gap by allocating a percentage of their sustainable investment portfolios to specific transactions designed to increase insurance coverage, providing a sense of security to communities providing rapid relief when a disaster hits, and enhancing overall resilience. Developing and emerging markets are the most vulnerable to the consequences of climate change.”

In addition, Schroders Capital highlighted that between 2014 and 2023, some 85% of economic losses caused by natural disasters in Asia were not covered by insurance.

Highlighting the $125 million Charles River Re Ltd. (Series 2024-1) catastrophe bond, that was sponsored by American European Insurance Company, Schroders Capital explained why this transaction was deemed to contribute to narrowing the insurance protection gap.

“The need for such cover was exemplified with Superstorm Sandy: in such events, risks carriers often face ‘concurrent causation’ and are caught between the homeowners insurance company and the flood insurance company, one arguing that the event was caused by flood, the other one by wind. It is costly and leaves the policyholder uncovered, impacting the reputation of the insurance company and the industry more broadly.

“With this cat bond, the sponsor offered a flood endorsement on each quotation, resulting in a differentiated product with the target being value-oriented mass affluent homeowners,” the asset manager explained.

Despite certain deficiencies when it came to ESG scoring this catastrophe bond, Schroders Capital noted, “The transaction structurally and explicitly addresses the protection gap when it comes to the availability of coastal flood risk which is generally not offered by the insurance market.”

Insurance-linked securities (ILS) is an area that Schroders Capital sees as a focus in its sustainability and impact efforts.

“Our ILS sustainable strategies, including one of the world’s largest cat bond funds, are a good example: they provide a suitable reinsurance alternative for local governments or NGOs against e.g. extreme whether events, reducing insurance protection gap while at the same time delivering competitive financial returns,” the company said.

Schroders Capital has also been one of the ILS managers that have helped to drive greater ESG transparency through the catastrophe bond and broader ILS marketplace.

The investment manager was a founding member of the ILS ESG Transparency Initiative, which was formed as an insurance-linked securities (ILS) industry group focused on enhancing environmental, social and governance (ESG) transparency in the ILS market.

Schroders Capital believes that effort has made a significant contribution so far, highlighting that ESG disclosure has increased in the marketplace.

The company said that its internal data suggests “that 77% of ILS cat bond transactions have made ESG questionnaires available deals in Q4 2023,” which is a significant increase.

Georg Wunderlin, CEO, Schroders Capital, commented, “Sustainability is more critical than ever to deliver long-term competitive returns. It is simply a once in a generation business opportunity.

“Our ambition is to build a new type of private markets firm, one which is anchored in sustainability and delivers the superior performance and real-world difference our clients expect from us.”

ESG investing, sustainability and opportunities they present, remain an area of focus for the insurance-linked securities (ILS) market. Read more of our insights on this topic here.

Schroders Capital invested $817m+ in ILS that help reduce protection gap in 2023 was published by: www.Artemis.bm
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During the full-year 2023, the catastrophe bond and insurance-linked securities (ILS) team at private markets focused investment manager Schroders Capital allocated over US $817 million to transactions that specifically help in reducing the insurance protection gap.

Schroders Capital has quantified this area of impact that its cat bond and ILS investment management unit has been making for a recent report on the firm’s broader sustainability focus.

While it is clear that catastrophe bonds and insurance-linked securities (ILS), as an alternative mechanism for sourcing reinsurance capital, are inherently providing protection against disaster and enabling the insurance industry to better bear the risks it underwrites, Schroders Capital has categorised transactions it specifically feels are making a difference on helping to cover more uninsured economic losses.

The investment manager sees its capital making a difference, saying that if “managed carefully, can unlock… significant improvement potential for people and planet.”

One area is in driving increased availability of insurance and reinsurance protection, specifically, “through increased climate insurance coverage in emerging markets, private equity or via ILS cat bonds.”

Schroders Capital further explained, “In 2023, only 40% of losses resulting from natural disasters globally were covered by insurance, leaving a value of US$172 billion uninsured.

“Our ILS team works to reduce this protection gap by allocating a percentage of their sustainable investment portfolios to specific transactions designed to increase insurance coverage, providing a sense of security to communities providing rapid relief when a disaster hits, and enhancing overall resilience. Developing and emerging markets are the most vulnerable to the consequences of climate change.”

In addition, Schroders Capital highlighted that between 2014 and 2023, some 85% of economic losses caused by natural disasters in Asia were not covered by insurance.

Highlighting the $125 million Charles River Re Ltd. (Series 2024-1) catastrophe bond, that was sponsored by American European Insurance Company, Schroders Capital explained why this transaction was deemed to contribute to narrowing the insurance protection gap.

“The need for such cover was exemplified with Superstorm Sandy: in such events, risks carriers often face ‘concurrent causation’ and are caught between the homeowners insurance company and the flood insurance company, one arguing that the event was caused by flood, the other one by wind. It is costly and leaves the policyholder uncovered, impacting the reputation of the insurance company and the industry more broadly.

“With this cat bond, the sponsor offered a flood endorsement on each quotation, resulting in a differentiated product with the target being value-oriented mass affluent homeowners,” the asset manager explained.

Despite certain deficiencies when it came to ESG scoring this catastrophe bond, Schroders Capital noted, “The transaction structurally and explicitly addresses the protection gap when it comes to the availability of coastal flood risk which is generally not offered by the insurance market.”

Insurance-linked securities (ILS) is an area that Schroders Capital sees as a focus in its sustainability and impact efforts.

“Our ILS sustainable strategies, including one of the world’s largest cat bond funds, are a good example: they provide a suitable reinsurance alternative for local governments or NGOs against e.g. extreme whether events, reducing insurance protection gap while at the same time delivering competitive financial returns,” the company said.

Schroders Capital has also been one of the ILS managers that have helped to drive greater ESG transparency through the catastrophe bond and broader ILS marketplace.

The investment manager was a founding member of the ILS ESG Transparency Initiative, which was formed as an insurance-linked securities (ILS) industry group focused on enhancing environmental, social and governance (ESG) transparency in the ILS market.

Schroders Capital believes that effort has made a significant contribution so far, highlighting that ESG disclosure has increased in the marketplace.

The company said that its internal data suggests “that 77% of ILS cat bond transactions have made ESG questionnaires available deals in Q4 2023,” which is a significant increase.

Georg Wunderlin, CEO, Schroders Capital, commented, “Sustainability is more critical than ever to deliver long-term competitive returns. It is simply a once in a generation business opportunity.

“Our ambition is to build a new type of private markets firm, one which is anchored in sustainability and delivers the superior performance and real-world difference our clients expect from us.”

ESG investing, sustainability and opportunities they present, remain an area of focus for the insurance-linked securities (ILS) market. Read more of our insights on this topic here.

Schroders Capital invested $817m+ in ILS that help reduce protection gap in 2023 was published by: www.Artemis.bm
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Kettle, the reinsurance focused deep-learning and artificial intelligence (AI) MGA, has announced the appointment of Isaac Espinoza as its new CEO.

Kettle launched with a mission to enhance the understanding of catastrophe and climate exposures with its advanced technological approach to modelling risks.

The focus has predominantly been on wildfire risks, although the insurtech has also branched out to write hurricane reinsurance coverage with the assistance of Reask.

Using advanced AI and machine learning, Kettle aims to better-model exposures and then establish mechanisms and structures to transfer risks to both traditional and capital market sources of reinsurance capacity.

Back in 2022, the company launched Kettle Re Ltd., its own collateralized insurer class of company registered in Bermuda, through which its goal was to transfer a portion of the risks it underwrote to capital markets sourced reinsurance capacity.

Now, two of the Kettle co-founders Andrew Engler and Nathaniel Manning are transitioning to advisory positions at the firm, leaving a gap for a new CEO.

Taking on that challenge will be Isaac Espinoza, the former SVP of Reinsurance at insurtech Root.

Co-founder and CTO, Son Le, remains at Kettle as well and will lead the company alongside Espinoza.

Espinoza has almost 20 years of experience working in insurance, reinsurance, and insurtech.

Before joining Root, Espinoza was an investor and operator at Greenlight Re, supporting insurtech startups and working on the actuarial, underwriting and innovation teams. He began his insurance career as an actuary at Fireman’s Fund in California.

Espinoza commented on his appointment, “I’m excited to continue my career as an operator and leader, working on some of the most important existential questions for the insurance industry and for our planet.

“Kettle has a head-start on modeling emerging risks and providing insurance options in a market where protection is harder and harder to come by.”

Son Le added, “We’re at an inflection point where our unique models can offer protection to customers currently underserved by incumbent providers. Isaac’s arrival is exciting for Kettle and our future in the industry.”

Lauren Kolodny, partner at Acrew Capital, which led Kettle’s $25 million Series A round in 2021, commented, “Isaac’s arrival is an exciting evolution for Kettle as it expands into new lines and new states. This year has been an important growth year. We’re thrilled to welcome Isaac’s leadership.”

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A joint report published by insurance giant Generali and the United Nations Development Programme (UNDP) highlights parametric risk transfer and insurance as a key solution that can help to close the US $1.8 trillion protection gap.

“Parametric insurance is speeding up recovery from climate-related hazards and other shock events, especially for communities in vulnerable contexts,” the pair explain.

Adding that case studies show how parametric insurance can contribute to improved financial resilience for households, businesses and global value chains.

Parametric and index-insurance products are seen as viable ways to enable governments, businesses and communities around the world to financially prepare better for what are seen as increasingly frequent and severe natural hazards, ranging from drought, extreme heat and tropical cyclones to storm surges, earthquakes and other shocks.

As parametric policies can provide pre-agreed payouts that are based on independently verified triggers, typically based on the parameters of a weather, climate or catastrophe event instead of assessed losses, it can drive faster payouts and therefore fund a faster recovery from impacts and losses.

Parametrics are seen as a “complementary risk transfer mechanism to fill gaps left by traditional indemnity-based insurance.”

Christian Kanu, CEO of Generali Global Corporate & Commercial (GC&C) commented, “This report demonstrates our commitment to addressing the protection gap by offering innovative insurance solutions that can strengthen the resilience of underinsured communities in many regions of the world. Parametric insurance can be transformative, providing cost-effective, efficient risk coverage to those previously unreachable by traditional insurance. Consequentially, this helps communities and businesses cope with natural hazards and operational interruptions. At Generali GC&C, we are proud to be the Group’s center of excellence for parametric insurance, and we will continue striving to be Lifetime Partners for our clients.”

Jan Kellett, Global and Corporate Lead on Insurance and Risk Finance at UNDP, added, “Of critical importance to this work is the role of government. Our joint UNDP-Generali report makes one thing clear – the insurance industry cannot scale parametric solutions to build financial resilience without the appropriate ecosystem. Development actors must significantly increase efforts to establish supportive regulations and policies that allow parametric insurance to contribute meaningfully to closing the financial protection gap.”

Generali’s partnership with the UNDP has “an ongoing commitment to scale financial protection by fostering wider public-private collaboration,” the pair explain.

The ultimate goal is to help “create the kind of ecosystem necessary to support the growth of parametric insurance as a tool to protect vulnerable communities.”

Previously, the two entities had announced a partnership focused on the creation of digitally enabled parametric insurance solutions.

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Descartes Underwriting, a data-driven risk transfer specialist managing general agency (MGA) and insurer with a parametric focus, has launched a Strategy & New Business Division with two key hires, as the company looks to expand the scope of its scientific underwriting offering.

Descartes’ Strategy & New Business Division has been established so the company can explore potential opportunities for development and diversification using its unique underwriting model, that leverages artificial intelligence (AI) and data analysis to model, assess and manage risks.

The goal is to extend Descartes’ underwriting approach into new risk classes.

Cyril Blin has been hired as the Principal Underwriter, Technical Risks. He spent the past 19 years at insurer AXA France as a Technical Risks Expert Underwriter and the firm’s national referent for machinery breakdown, construction equipment, and affinity insurance. Prior to that, Blin spent seven years in underwriting roles at French commercial insurer Albingia and brings experience underwriting a wide spectrum of engineering risks to Descartes.

Benjamin Lambert has been hired as Senior Credit Underwriting Manager, Credit & Political Risk Insurance (Single Risk), joining Descartes from Coface, where he spent almost eight years underwriting global large credit risks and became that carrier’s Deputy Head of Credit and Political Risk Insurance.

Descartes said that the new appointments will help to fulfil its ambition to innovate on a new generation of corporate insurance products.

Tanguy Touffut, co-founder and CEO of Descartes, commented, “Cyril and Benjamin’s extensive specialty insurance experience adds invaluable expertise to Descartes’ unique corporate insurance modeling and pricing approach.

“It will enable us to develop innovative products and deliver greater value to our clients, giving them the best of both worlds: traditional insurance and risk knowledge, alongside our market-leading scientific approach to underwriting.”

Descartes launches new division to expand scope of offerings, including parametrics was published by: www.Artemis.bm
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