Fintech

Speaking yesterday to an audience at the InsureTech Connect conference in Las Vegas, Markel Co-CEO Richard Whitt explained that his company is going all in on insurance-linked securities (ILS).

The awaited launch of B3i’s catastrophe excess-of-loss (XOL) reinsurance placement system built on distributed ledger technology came today and the company highlighted it can be used for retrocession as well as treaty reinsurance.

For some year’s now we’ve been saying that insurance-linked securities (ILS) capacity and alternative reinsurance capital is destined to get closer to risk, as structures and technologies advance to allow it to break free from the strictures of the traditional market chain.

B3i, the insurance and reinsurance industry initiative that aims to create standardised systems for transacting in reinsurance using a distributed ledger, says that its catastrophe excess-of-loss (XOL) reinsurance placement system is finally ready to be released.

Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) start-up that aims to enhance the way re/insurers fund their risks using securitisation and tech, has added a new Advisor to its team.

Insurance technology (insurtech) and insurance-linked securities (ILS) start-up Ledger Investing has successfully completed its first transaction, directly securitizing a portfolio of non-standard passenger auto insurance between an MGA and the AIG-owned ILS fund manager AlphaCat.

Blockchain is a potential game-changer for the insurance and reinsurance sector, according to Fitch Ratings, who forecast that the technology will become increasingly embedded in the fabric of the re/insurance market over the coming years and that ILS related use-cases will continue to emerge as well.

At the Monte Carlo Reinsurance Rendez-vous event a working prototype of a blockchain powered reinsurance transaction platform was launched by the group of fifteen global insurers and reinsurers that make up the B3i (Blockchain Insurance Industry Initiative).

Insurtech start-up Ledger Investing, which counts ex-AIG capital markets head Samir Shah as its CEO, is in the process of completing a $5 million round of seed funding to help it build out its insurance risk securitization platform and expand its team.

Global insurance and reinsurance players Aegon, Allianz, Munich Re, Swiss Re and Zurich have teamed up to collaborate on developing and proving the use of blockchain distributed ledger technology and smart contracts within the industry, beginning with a retrocession proof of concept.