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Nov 2017

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A new breed

Source: Asia Insurance Review | Nov 2017

China Reinsurance

TigerRisk’s Managing Partner and CEO Rod Fox shares the company’s plans as they look to mark their 10th anniversary next year.
 
 
2018 will see us mark our 10th anniversary as a firm. TigerRisk has so far singularly accomplished outstanding performance in terms of revenue and business development, even when measured against our own aggressive internal benchmarks. 
 
   We have the product innovation, palpable energy, a sense of “team” and an unrivalled collection of experienced, skilled professionals armed with resumes that cover all of the intellectual disciplines necessary to make us the preeminent strategic risk capital advisers we aspire to be each day. 
 
Best solutions for our clients
We believe that our fundamental and distinguishing mission is to provide the best and most appropriate capital solutions to our clients. Reinsurance is only a single arrow in our quiver. 
 
   Our fully integrated team of reinsurance advisers and capital markets professionals boasts resumes describing technical and analytical skills which span all of the disciplines necessary to deliver multiple options and structures tailor-made to the challenges at hand. 
 
   Whether it is “sidecars”, insurance linked securities, capital raising, innovative business combinations, industry loss warranties or more traditional reinsurance structures, we display and explain the options and their financial implications. Our recent extensive experience with large underwriting portfolio transactions exemplifies how we have been able to distinguish ourselves. While many of these ideas have yet to find wide acceptance in Asia, we continue to spend a lot of senior time improving their understanding to an increasingly interested audience. 
 
   We are going to be very focused on expanding our business footprint from Hong Kong when and where opportunities permit. We want to contribute to the professional development of our team members, clients and prospects. We will continue to offer new and innovative ideas to the companies and countries we serve and be good corporate citizens wherever we operate. 
 
21st century belongs to Asia
As we approach the year-end renewal, the TigerRisk team in Singapore expects to hear the same refrain about current market risk and pricing as was so prevalent in Monte Carlo only six weeks ago. 
 
   Will the large property CAT losses impacting North America, Mexico and the Caribbean have a meaningful impact on pricing? Will that impact be felt in Asia as global capacity flows to the markets and regions relatively unscathed? Financial capacity is fungible but the levers of its movement sometimes defy logic. 
 
   We, at TigerRisk, think the 21st Century belongs to Asia when it comes to future growth and development. The penetration numbers by country tell the tale. Insurance has already been invented elsewhere and needs to find its adaptation to local Asian market conditions to fulfil its rightful destiny in the risk management/risk transfer solutions’ spectrum. That emergence, however, must be accompanied by a more stringent measurement of true exposure in all Asian markets. 
 
   The challenge for the market makers and the risk management community is to improve the precision of their outcomes and then to calibrate the pricing of this sharpened assessment at levels that will encourage capital to flow to higher return options, both traditional and non-traditional. The task is evolutionary to be sure. The risk is we move too slowly. 
 
Technological innovations in reinsurance
In many respects, Asia is ahead of Europe and North America with the use of smartphones to distribute and manage personal lines insurance. In that regard, the West is playing catch-up.
 
   When it comes to reinsurance, several technological innovations come to mind. The first is the continued development of catastrophe models. They are becoming increasingly accurate and comprehensive. The more accurate they become, the more willing large investors are to invest in risk. 
 
   Another development is Big Data – the ability to interpret and use the huge and ever-growing volumes of information available from a variety of sources to better understand risk and develop better solutions. 
 
   And finally, blockchain, or distributed ledger, is a technology in which competitors, even entire markets, share information, methodologies and standardised systems to conduct business in a transparent way. It smooths transactions and reduces disputes.
 
TigerRisk innovations
TigerRisk has developed several new innovations that employ these new technologies.
 
   TigerEye® is a reinsurance portfolio roll-up and modelling tools which enables reinsurers to make data-driven business decisions in real-time and to quickly evaluate the pricing of individual programmes and their impact on existing portfolios. It was developed for internal use at TigerRisk. But when our clients saw what it could do, they wanted TigerEye for their own. Peak Re, a well-known Hong Kong based reinsurer, was one of the most recent buyers to license TigerEye.
 
   TigerRisk also helped develop a distributed ledger product called globalREmarket® which has become quite popular among cedants and reinsurers as a way to place and purchase reinsurance. 
 
   The tool works like an electronic trading platform. It provides all parties with full, up-to-date information in one central location, streamlines the workflow process, and it creates a more efficient market. Some 200 reinsurers and brokers use this new technology. 
 
   TigerRisk recently announced the formation of a new third-party company which will further develop this state-of-the-art reinsurance placement platform. The new company, RePlace Holding LLC, has been established in conjunction with Willis Re, the reinsurance business of leading global advisory, broking and solutions company Willis Towers Watson. 
 
   These technology tools give our clients a competitive advantage both in the Asian and global reinsurance markets. TigerRisk will continue to make large investment of time and money in new and disruptive technology, including a team which identifies and evaluates areas within InsurTech that makes the most impact.
 
Optimism in Asia
TigerRisk has tremendous confidence in the future of the insurance and reinsurance business in Asia. 
 
   We think the upside rivals that of any other region in the world and promises to roll out over decades. We have a measured but specific plan to be on the escalator to a broader and more active role in a number of different country markets.
 
   We are very pleased with our team and presence in Hong Kong and with the progress we have been able to make. They are very much integrated into the TigerRisk global team with continuous two-way traffic of market knowledge and opportunities.
 
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