Howden Re, the reinsurance, capital markets and strategic advisory business of global insurance intermediary Howden, has established a new International Alternative Solutions practice to help clients develop alternative approaches to managing risk and accessing capital.
The new practice, led by Alexander Roth, will bring together specialists from across risk transfer, analytics and capital markets to develop solutions for corporates, insurers, reinsurers, public sector organisations and investors.
Howden Re said the team will focus on both physical and financial exposures, with capabilities covering structured reinsurance, climate science, data analytics, product development, portfolio structuring, pricing, capital markets and placement.
The launch also sees Peter Steiner and Kanika Anand move to Howden Re International from Howden’s Climate Risk and Resilience practice. The pair will establish a dedicated parametric offering for reinsurance clients, drawing on their experience in developing and expanding parametric solutions across a range of sectors and markets.
Howden Re said the new practice will address risks across sectors including agriculture, energy, infrastructure, natural capital, construction, travel, events and specialty lines. Its work with insurers and reinsurers will include portfolio protection, capital relief, earnings stabilisation and alternative retrocession arrangements, as well as structures designed to combine traditional reinsurance with structured solutions and insurance-linked securities.
The move comes as insurers and other risk holders face increasing pressure from physical risks and seek alternatives where conventional insurance may not provide sufficient or efficient protection. Howden has highlighted the growing protection gap in agriculture as one example.
Its analysis for the European Investment Bank and European Commission’s report, Insurance and Risk Management Tools for Agriculture in the EU, found that adverse weather currently costs European agriculture an average of €28 billion annually. The report estimates that losses could rise above €40 billion a year by 2050 and points to parametric insurance, reinsurance, catastrophe bonds and risk pooling as potential tools for improving resilience.
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.
“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.”
Roth commented: “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.”
Steiner said: “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.
“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.
“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.”
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