French reinsurance company SCOR has created a new business unit, called Alternative Solutions, to centralise and house its activities in insurance-linked securities (ILS), structured risk transfer and alternative risk financing.
The move to centralise and formalise the alternative reinsurance functions by the French reinsurer further demonstrates the importance of alternative risk transfer techniques, such as ILS and collateralized reinsurance, to the large globally diverse group of reinsurance firms.
The Alternative Solutions unit will sit within SCOR’s Global P&C division and its goal will be to provide SCOR’s insurance and corporate clients with access to a growing range of hybrid, or alternative, reinsurance solutions for the transformation, financing and transfer of risks.
The business unit sits within the Specialties segment of SCOR Global P&C, bringing together the reinsurers expertise in delivering Structured Risk Transfer (SRT), Alternative Risk Financing (ARF) and Insurance Linked Securities (ILS) solutions. The unit will be supervised by SCOR’s SRT & ART Committee, made up of Victor Peignet (SCOR Global P&C CEO), Benjamin Gentsch (Deputy CEO of SCOR Global P&C) and Yvan Besnard (Chief Underwriting Officer of Worldwide Treaty business).
Vincent Foucart, previously Group Corporate Secretary from 2010, will be the director of the newly created Alternative Solutions business unit at SCOR. Foucart has also been responsible for developing SCOR Global P&C’s ILS offering since 2011.
SCOR is a long-time issuer of catastrophe bonds for its own retrocessional reinsurance, it also has a collateralized reinsurance sidecar and through its SCOR Global Investments unit manages insurance linked securities funds. It also provides risk transformation and fronting type services for clients seeking to access collateralized sources of capital market backed capacity.
It’s a natural step for the reinsurer to raise the importance and profile of its ILS and other structured alternative reinsurance solutions. With the importance of the capital markets, ILS and diversifying sources and forms of risk transfer on an exponential rise, the centralisation of these offerings will help SCOR to increase their uptake by its clients.