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The establishment of the World Bank’s capital-at-risk notes program almost four years ago set the foundation for continued innovation and expansion, as the organisation looks to “push the boundaries” of insurance-linked securities (ILS) market risks, according to Michael Bennett, Head of Derivatives & Structured Finance, World Bank Treasury.

Speaking with Artemis following the completion of the historic $1.36 billion of parametric earthquake catastrophe bonds that benefit Pacific Alliance member countries Chile, Colombia, Mexico and Peru, Bennett highlighted the importance of the World Bank’s capital-at-risk notes program.

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ОРИГИНАЛЬНАЯ ПУБЛИКАЦИЯ ЗДЕСЬ

В конце февраля москвичей ожидает погода, близкая к аномальной для такого времени года. Этой зимой температура воздуха еще не опускалась ниже минус 20 градусов

На следующей неделе погода в Москве приблизится к «аномально холодной», сообщила РБК главный специалист Гидрометцентра Марина Макарова.

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Argo Group is making a strategic shift to originate more risks for investors, as the company finds increasing interest from third-parties in accessing the returns of the re/insurers underwriting performance, according to CEO Mark E. Watson III.

It’s a sign of the continuing development of Argo’s strategy, as its specialty insurance and reinsurance platform has expanded with the acquisition of Ariel Re just over a year ago, as well as a reflection of developing business practices in the reinsurance space.

Putting your underwriting abilities to work, leveraging your intellectual capital or risk expertise, in order to share returns of portfolios of underwritten risks with third-parties that often have a lower cost-of-capital to your own, is becoming a core strategic mandate for many re/insurers.

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Third party capital can help reinsurers lower the cost of capital and therefore coverage and this should be seen as an attractive business opportunity, according to AXIS Capital CEO Albert Benchimol.

Third party capital is here to stay, it has an appetite for risk and it wants to participate in the risk transfer universe, Benchimol said at a Feb. 15 presentation at the Bank of America Merrill Lynch Insurance Conference.

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Global specialty insurance and reinsurance company Brit Ltd’s new open-ended collateralised reinsurance fund vehicle raised $102.5 million from investors for the 2018 underwriting year, which the firm called “the next step in Brit’s strategy to build long term relationships with the capital markets.”

Sussex Capital, an open-ended ILS fund that will underwrite its collateralised reinsurance business through special purpose insurance vehicle Sussex Re, will both write third-party business as well as take a share of risks that Brit underwrites already.

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As insurance and reinsurance specialist XL Group increased its use of alternative capital to $3 billion around the renewals, it did so by leveraging its ILS fund manager New Ocean Capital Management, as well as through the addition of a new property quota share deal with third-party capital partners.

That wasn’t all that XL Group, parent to the XL Catlin insurance and reinsurance brand, did in the fourth-quarter and at the renewals, to increase its use of alternative reinsurance capital.

As we wrote recently here, XL’s increased use of alternative capital has been part of a strategy to use the most efficient reinsurance capital on the back-end of its business model, to support expansion of the front-end insurance and reinsurance underwriting business.

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Despite seeing cybersecurity as a top risk management priority, a survey finds out that only few senior executives believe in their organization’s ability to mitigate and respond to a cyber event.

In a global survey of more than 1,300 senior executives, two-thirds ranked cybersecurity among their organizations’ top five risk management priorities – approximately double the response to a similar question asked in 2016.

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Insurers are scrambling to reinvent themselves with help from Israeli start-ups in the insurtech market, that has tripled over the past four years.

Large insurance companies from around the world are increasingly popping up as visitors to the Israeli tech ecosystem. Aviva plc, a huge UK-based insurer recently brought a delegation of top executives to meet with local insurtech, fintech, and cybersecurity startups. AmTrust Financial Services, a Nasdaq listed multinational property and casualty insurer ($2.5B market cap) earlier in February sent its COO, CIO, and CMO to sign agreements with three Israeli startups that could help it integrate AI into its services. Last November Japanese insurance giant Sompo (founded in 1887) opened an innovation hub in Tel Aviv.

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Cyberattacks cost financial-services firms more to address than any other industry and the rate of breaches in the industry has tripled over the past five years, according to a report from Accenture and the Ponemon Institute.

However, while cyberattacks have a greater financial impact on the financial services industry than on any other industry, financial services firms are making security technology investments that contribute to reducing the cost of breaches significantly. The greatest proportion of financial services firms’ cyber defense spending is for more advanced solutions like security intelligence systems, followed by automation, orchestration and machine-learning technologies.

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S&P Global Ratings said that it assesses industry and country risk in the Russian property/casualty (P/C) insurance sector as high, reflecting that high country risk outweighs the intermediate industry risk.

In their view, high country risks in Russia (foreign currency rating: BB+/Positive/B, local currency: BBB-/Positive/A-3) create an unfavorable operating environment for insurers. Although they expect real GDP growth of 1.7% per year, on average, over 2017-2020, they see this level as low and not sufficient to significantly boost the development of the P/C insurance sector. Russian economic growth continues to be volatile, limited by the state’s dominant role in the economy, low productivity, adverse demographics, sanctions, and the challenging investment climate.
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