Global Parametrics, the recently launched start-up that aims to sell parametric and index-based risk transfer to organisations which are largely unprotected today, has hired Hector Ibarra, previously of the World Bank, as its Chief Executive Officer (CEO).
Hector Ibarra is a high-profile appointment for the relatively new Global Parametrics, and the CEO will bring with him a wealth of experience in global disaster risk transfer and financing, as well as a significant profile and depth of contacts in the key developing economies of the world.
“I am excited to get the opportunity to lead Global Parametrics into fulfilling its intended role as a market maker of parametric risk financing products in emerging markets,” Hector Ibarra explained to Artemis regarding his appointment.
Ibarra was previously with the World Bank since 2011, first as a senior financial officer and latterly as a Lead Financial Officer. Prior to that from 2006, Ibarra was Assistant Vice President, Insurance Linked Securities at reinsurance firm PartnerRe. Before joining PartnerRe, Ibarra spent two years consulting to the World Bank on disaster and weather risk transfer as well.
In his time in the industry, Ibarra has been responsible for the strategy and delivery of the first weather derivative transaction in a developing country, the creation of a number of parametric disaster insurance facilities, assisted in the World Bank’s catastrophe bond work, worked on multi-country catastrophe derivative products, acted as Practice Leader for the Disaster Risk Financing Group within the World Bank Treasury.
He has also worked on the origination and marketing of parametric insurance and risk transfer structures, designed and implemented catastrophe risk transfer products, worked in support of an insurance-linked securities (ILS) and catastrophe bond trading desk, traded in OTC weather derivatives, and coordinated a significant amount of the World Bank’s work where it touched on the global reinsurance and ILS markets, including educating potential sovereign risk transfer buyers.
Chief Sponsor of Global Parametrics, Jerry Skees, commented on the appointment; “We are thrilled to have Hector Ibarra join as the CEO. Hector and I have worked on various projects since 1999. We share a common vision for what is needed from GP to be a catalyst for addressing the insurance protection gap in these markets that you have been writing about for some years.”
One of the key goals of Global Parametrics is to bring together public and private markets, alongside sectors such as traditional reinsurance and ILS funds, in order to spread risk effectively and bring the most efficient pricing of parametric risk possible to clients.
It is only through this collaborative approach, with an agnostic view as to capital source and a focus on capital efficiency, that real strides can be taken to begin to increase penetration of risk transfer and cover regions that are unprotected today.
“The sponsors and founding investors of GP have created a very powerful innovation platform that can benefit significantly the efforts of the insurance & ILS industry to expand the market frontier,” Ibarra continued. “I am looking forward to work with a wide spectrum of public and private sector investors in order to maximize the impact of this initiative.”
Ibarra’s appointment brings a significant amount of additional credibility to Global Parametrics, which can only assist the firm in pursuing its mission, identifying and developing a client base, as well as in building strong relationships with the reinsurance and ILS markets it intends to collaborate with.
We understand that Ibarra will be based in Europe for Global Parametrics.