Transfer Risk Strategically


See also:

Forecast
Manage

Our parametric reputation insurance:

Unlike D&O liability insurance, Side R®, our corporate solution, and our captives solution are all first-party covers.

Provides unrestricted funds to cover director losses (lost board compensation, future engagements) or enterprise losses from reputational impairment.
Signals a robust reputation risk strategy to stakeholders — a “financial guarantee of quality.”
Gives investors, lenders, and financial counterparties confidence in enterprise resilience — often lowering capital and insurance costs.
Diversifies risk across triggers, frequency, severity, and tail time for insurance captives.

Reputation risk is unpredictable.

Introducing Steel City Re’s Side R® D&O parametric reputation insurance. Dutiful board members will paradoxically suffer personal reputational harm if aggrieved stakeholders feel betrayed, or if activists sense a vulnerability. Directors are exposed, and their losses are not covered by D&O liability insurance.

Steel City Re’s Side R® D&O parametric reputation insurance is a trademarked brand of reputation insurance from Steel City Re used under license.

Signaling Quality: Why insurance reassures better than preparedness.

Put simply, stakeholders don’t want to know you’re prepared for crises. They want to know you’re precluding them — that you practice thoughtful risk management and dutiful governance: quality enterprise risk management.

Insurance as a signal of quality was formalized in 1973 by Michael Spence, work that earned him the Nobel Prize in Economics in 2001. How insurance preserves trust and forestalls panic was formalized in 1983 by Douglas Diamond and Philip Dybvig, earning them the Nobel Prize 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.