Howden Re launches new unit with parametric reinsurance and capital market ILS focus

Howden Re, the global reinsurance broker, has announced the launch of an International Alternative Solutions practice, which is set to combine structured reinsurance, analytics, parametric and capital markets insurance-linked securities (ILS) expertise to develop innovative risk and capital solutions for clients across international markets.

The new division will be led by Alexander Roth, Managing Director, Head of Alternative Solutions, Howden Re International, who has been working at the broker since 2024.

As part of the launch, both Peter Steiner and Kanika Anand have joined Howden Re International from the broker’s Climate Risk and Resilience practice, establishing a dedicated parametric capability for reinsurance clients.

Together, they bring deep expertise in designing and scaling parametric solutions for clients across various sectors and geographies.

Working with corporates, insurers, public sector entities, and investors, Howden Re’s new International Alternative Solutions practice will address both physical and financial exposures.

Its technical capabilities reportedly span structured reinsurance, climate science, portfolio structuring, pricing, data analytics, capital markets and placement across sectors such as agriculture, energy, infrastructure, natural capital, construction, travel, events and specialty risks.

Importantly, for insurers and reinsurers this will include portfolio-level protection, capital relief, earnings stabilisation, and alternative retrocession structures, as well as solutions that connect traditional reinsurance, structured solutions and ILS capacity.

The launch of this unit comes as the need for these solutions continues to increase as physical risks become more volatile and companies continue to seek new ways to manage exposure that may not be efficiently addressed by traditional insurance methods.

“Insurance and Risk Management Tools for Agriculture in the EU, published by the European Investment Bank and European Commission with analysis and recommendations produced by Howden, found that adverse weather costs European agriculture an average €28 billion annually, with losses projected to exceed €40 billion per year by 2050. The report highlighted the protection gap and the potential for parametric solutions, reinsurance, catastrophe bonds and risk pooling to strengthen resilience,” Howden Re explained.

Massimo Renia, CEO, Howden Re International, commented: “Clients across Europe, Asia and other international markets are increasingly looking for solutions that go beyond traditional risk transfer. Alternative Solutions brings together specialist capabilities across risk, analytics, reinsurance and capital to give clients more options for managing volatility, protecting their balance sheets and accessing capacity.”

Adding: “Parametric is an important part of that proposition. Adding Peter and Kanika’s expertise gives us another way to address complex and underserved risks, while our international platform allows us to apply that expertise across markets, sectors and client needs.”

Alexander Roth, Managing Director, Head of Alternative Solutions, Howden Re International, noted: “Alternative Solutions is about starting with the client’s objective rather than a particular product. Whether that is protecting earnings, improving capital efficiency, addressing an underserved physical risk or finding a different way to access capacity, we can bring together the right combination of risk transfer, structuring, analytics and capital.

“Howden’s collaborative approach means we can connect our Alternative Solutions expertise with traditional reinsurance, capital markets and strategic advisory capabilities from across the Group, ensuring clients have access to the expertise and solutions best suited to their requirements. Together with our dedicated parametric capability, this significantly expands the range of solutions we can offer.”

Peter Steiner, Managing Director – Parametric Solutions, Howden Re, added: “The relevance of parametric risk transfer is no longer limited to weather protection. Increasingly, we are working with insurers, reinsurers, corporates, governments and investors to address volatility through solutions that deliver certainty, transparency and rapid access to capital following an event.”

Steiner continued: “Parametric structures can complement traditional insurance and reinsurance programmes, support portfolio protection, facilitate innovative retrocession strategies and help connect risk to both traditional and capital markets capacity. They can also help provide greater confidence around projected cash flows, investment returns and financing structures, supporting investment decisions in sectors where weather, natural catastrophe and other measurable risks can materially impact performance.”

Concluding: “As clients seek greater flexibility in how they manage risk and deploy capital, the boundaries between insurance, reinsurance and structured risk transfer continue to converge. The launch reflects Howden Re’s continued investment in specialist capabilities that help clients respond to a more volatile risk environment. It brings together Howden’s experience across parametric and climate risk, reinsurance, capital advisory, analytics and alternative capital, strengthening the firm’s ability to deliver practical, tailored solutions for clients across sectors and geographies.”