Parametric Reputation Insurance

June 8, 2024

Lacking good solutions, $25 billion of Marsh clients’ premium is going to captives. Hey! Steel City Re's insurance is made for complex risk!

Captives are a solution to the lack of innovation. Martin South, president and chief executive officer, Marsh, was being interview by Penny Randall Seach, group chief underwriting officer, Zurich Insurance Company in a Global CEO fireside discussion at AIRMIC called ‘Global forces driving change: a future outlook’ Because the industry is not offering products that address clients’s needs as risks evolve, “some $25 billion of Marsh clients’ premium is now being retained using this form of risk transfer.“ In other news, insurer AXA is reorganizing US operations. Layoffs are expected. Meanwhile, Steel City Re has on offer a remarkably innovative original outcome-based solution to the most complex risk of all. It is a solution insureds have wanted since 2005, and it is backed today by Tokio Marine Kiln.

June 1, 2024

Parametric solutions are gaining prevalence as “insureds sought to support their retention strategies or close the protection gap.”

Take up rates for parametric risk transfer, insurance and reinsurance solutions have grown “dramatically” over the last year, according to broker Aon. In particular, Aon highlights a rapid shift in both insurance market and corporate risk transfer buyers perceptions of risk transfer alternatives, which is helping to drive more rapid uptake of parametric solutions. […] “There has never been a greater need for alternative risk transfer solutions, including parametric solutions and captives.”

May 31, 2024

Corporate swatting--calling the DoJ when there is no known issue just to see if something shakes looses--is no longer unthinkable.

Manifestations of complex interconnected risks generally culminate in reputational crises, but they can be managed. Relying only on reporting systems when insiders may become aware of such risks…is not risk management. Reporting systems are unlikely to mitigate federal investigations and follow-on issues because today the risk/reward balance favors whistleblowing over internal reporting. In fact, the rewards of whistleblowing are so great right now that corporate swatting–calling the DoJ or SEC with a hot tip when there is no known issue just to see if something shakes looses–is no longer unthinkable.

May 30, 2024

Synthetic Data Key to Future Success

Synthetic data is the cool “AI” way of saying “insuring to model,” which is the essence of parametric insurance. In the worldview of Earnix, actuarial modeling will be based on models generated by AI, rather than on actual experience. Shocking? Parametric insurance products that have struggled to gain acceptance. Perhaps the AI marketing spin will make ensure parametrics look as cool as they really are?

May 3, 2024

Developing and Refining Risk Appetite and Tolerance. RIMS (S)ERM Executive Report. Monitor the risk landscape with metrics that are relevant, measurable, and actionable—before a crisis…advise Lianne Appelt, Lorie Graham and Trisha Sqrow. Hear a 5 Minute Adventure in Risk & Resilience podcast explain how with your bespoke edition of Steel City Re’s 3-part Resilience Monitor.