Digital risk trading start-up Akinova, which is developing an “electronic marketplace for the transfer and trading of (re)insurance risks,” has signed up Pierre Francotte, the former CEO of Euroclear as an advisor.
Akinova has been in development for more than a year now with a focus on creating a platform allowing for insurance and reinsurance risk transfer through a digital market interface.
The firm has been focused on bringing to market a version of an industry-loss warranty (ILW), which it has dubbed an Akinova Event Linked Option (AELO).
Francotte joins the firms Advisory Board bringing experience in the settlement, safekeeping and servicing of securities transactions, as well as in banking.
He spent 10 years as the CEO of Belgium-based financial services securities settlement company Euroclear and has held senior executive and non-executive roles at JP Morgan, Belfius Bank and the International Monetary Fund during his career in finance.
Akinova said that Francotte’s primary focus will be to help the firm in developing post-trading processes, including clearing, as well as helping the firm enhance its connectivity across financial services.
Akinova is one of a number of technology start-ups, or insurtech start-ups, that are aiming to make the transfer and trading of insurance or reinsurance risk more seamless and lower friction.
The ILW like product is expected to be the first, which could offer an interesting opportunity for ILS funds and reinsurance linked investors, as well as reinsurance firms looking for retrocessional product opportunities.