With some of Europe's major rivers running low, Swiss Re Corporate Solutions expanded its Innovative Risk Solutions offering by launching FLOW, the parametric water-level insurance. The new index-based product is designed to protect companies in Europe from the financial impact of high or low river water levels, such as lost revenue due to business interruption or increased costs due to risk mitigation measures. Swiss Re Corporate Solutions’ experts structure an index formula which references to measured water levels at defined river gauges. The customized index tracks the client’s water level exposure related to revenues and costs. Each contract is tailor-made to the individual exposure of the client. Unlike traditional insurance covers, which often require loss investigations and adjudication, FLOW provides pay-out of fixed amounts based on a defined index, for example each day the index remains below or above the defined index threshold value. This type of cover could become a trend that changes the traditional claims payment system.
Also of significance was SBC InsurTech(Startupbootcamp) announcing a new collaboration with Aon. Aon joins the SBC community as an industry partner for SBC InsurTech CoLab(CoLab), a themed-based innovation program for mature markets. CoLab aims to align the impact innovation can deliver with an organisation’s strategic imperatives and top priorities. Aon will be focusing on CoLab’s ‘Commercial and Specialty Lines’ sector, which will look at specific problems in key customer segments ranging from SME to large industrial insurance. This will enable the key gaps in the insurance value chain to be better understood and addressed through collaborating with growth stage startups.
AXA XL Risk Consulting announced it is using Artificial Intelligence(AI) to enhance its property risk engineering capabilities. KLP, Norway's largest pensions company, implemented a configurable web front-end for retail sales using Tia Sales Product Designer to enable quick and configurable customised offerings, and Tata Consultancy Services(TCS) joined Guidewire PartnerConnect as a Consulting partner at the Select level.
Munich Re estimated global economic catastrophe losses last year at $160bn with around 50% insured. An EEF/AIG survey identified Brexit and rising cyber as the most significant business risks for manufacturers, whilst a Conning study said the US Life-Annuity industry has been redefining itself to respond to pressures and build value.
Argo Group International renewed Harambee Re as its sidecar reinsurer for 2019, and Neon successfully raised third party capital to support its second ILS transaction through its UK-based transformer vehicle(NCM Re)-the first reinsurance renewal under the UK’s ILS regulatory regime. Following market leaks, Gallagher finally agreed to acquire specialist UK broker Stackhouse Poland. Hyperion Insurance Group revenue was up 16% for the year ending 30th September 2018. There were a raft of senior appointments including LV=, Metlife; AXIS Capital, Compre, Hamilton, Liberty Mutual Re, Munich Re; and Willis Towers Watson.
The Insurance Europe Reinsurance Advisory Board(RAB) published an overview of the benefits of insurers’ use of internal models. The Financial Conduct Authority(FCA) published two further consultations to prepare for the UK’s exit from the EU, and AXA is to handle its international risk and reinsurance through an Irish unit in light of UK plans to leave the EU. Insurance Ireland ceo said “The defining issue in the Irish general insurance market is the cost of claims and policyholders deserve to know when the planned reforms will be completed." The result of the ECON vote on the ESAs review was largely positive, but concerns remain about proposed governance changes, reported Insurance Europe
Full articles on the above topics are included in those added this week to the Newslink Global Trends Database Matrix Resource at www.onlystrategic.com
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