21: Parametric risk transfer opportunities in Asia - ILS Asia 2020 panel
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This podcast episode features a panel discussion from our July 2020 virtual ILS Asia conference, participants discussed the opportunities for parametric risk transfer structures in the region, as well as how reinsurance and insurance-linked securities (ILS) markets can capitalise on them.\\xa0
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\\nSpeakers said there is a need for greater education and awareness, but that risk managers across Asia are becoming increasingly comfortable with the idea of parametric structures.\\xa0
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\\nIn recent years, and notably in the insurance, reinsurance and ILS space, parametric trigger structures have grown in popularity and speakers explained how corporate risk managers use this type of protection as an alternative and to complement their traditional programmes.\\xa0
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\\nThe panel also discussed the use of parametric triggers in catastrophe bond transactions.\\xa0
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\\nAvailability of data can be an issue though and speakers said while in Asia there is access to satellite data relatively easily, it is still more difficult to obtain windspeed data, for example, when compared with more developed markets like the U.S.\\xa0
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\\nParticipants also offered some thoughts on the investment case for parametric ILS structures, insurance or reinsurance and how investment managers approach these types of transactions.
'
\\n
\\nSpeakers said there is a need for greater education and awareness, but that risk managers across Asia are becoming increasingly comfortable with the idea of parametric structures.\\xa0
\\n
\\nIn recent years, and notably in the insurance, reinsurance and ILS space, parametric trigger structures have grown in popularity and speakers explained how corporate risk managers use this type of protection as an alternative and to complement their traditional programmes.\\xa0
\\n
\\nThe panel also discussed the use of parametric triggers in catastrophe bond transactions.\\xa0
\\n
\\nAvailability of data can be an issue though and speakers said while in Asia there is access to satellite data relatively easily, it is still more difficult to obtain windspeed data, for example, when compared with more developed markets like the U.S.\\xa0
\\n
\\nParticipants also offered some thoughts on the investment case for parametric ILS structures, insurance or reinsurance and how investment managers approach these types of transactions.