Transfer Risk Strategically


See also:

PREDICT
Manage

Our parametric reputation insurance:

Serves as an objective, third-party authentication of your company’s thoughtful risk management and dutiful risk governance. Like an insurance captive’s profits but at the strategic enterprise level, it transparently signals the quality of your strategic reputation risk management.
Signals to stakeholders that a business has a robust risk strategy to understand and manage its enterprise-wide reputation. Think of it as a “financial guarantee of quality.”
Provides investors, lenders, and other sources of financial transactions with confidence in the elevated resilience of a business, which often leads to lower capital and insurance costs.
Provides risk diversification including triggers, frequency, severity, and tail time for insurance captives.

Objectivity is the key ingredient to signaling higher risk strategy quality.

With ESG metrics still evolving and often derided for their subjectivity, stakeholders want an objectively reliably assurance of resilience, not just insurance on the risks to it.

Steel City Re’s measures of reputation value, risk, and insurance make this possible. Think of parametric insurance as an endorsement of “corporate vital signs,” affirmed through objective criteria and thresholds similar to those in health and life insurance. Having such protection is a promotable value to your stakeholders.

Our parametric insurance doesn’t just protect, it promotes.

Put simply, your stakeholders and the public at large do not want to know that your company is prepared for crises. They want to know that you’re actively trying to preclude them. They want to know that you have effective thoughtful risk management and dutiful governance—quality enterprise risk management.

The role of insurance as a signal of quality was conceptually formalized in 1973 with a Nobel Prize in Economics going to Michael Spence in 2001. How insurance preserves trust and prevents stakeholder panic was conceptually formalized in 1983 with that prize going to Douglas Diamond and Philip Dybvig in 2022.

Parametric Insurance, Technical Features

Metric: Reputation value metric reported in Gerken Units.
Model: Cash flow expectations, normalized, comprising an overlay on the basis for stock price; i.e., discounted net present value of future cash flows.
Monitoring Agency: Model and data owned by Technology Option Capital and distributed as a Steel City Re-branded solution.
Market: Tokio Marine Kiln.

Our insurance signals resilience through quality risk management.

Our objectively exclusive insurance, based on our synthetic measures of reputation value, makes this possible. We are the world’s only source of insurance based on quantitative forward-looking business performance metrics. Our measures power equity indices such as INDEXCME: REPUVAR.