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RKH, Descartes complete first parametric weather trade on AkinovA

19th May 2020 - Author: Charlie Wood

RKH Reinsurance Brokers and Descartes Underwriting has completed the first parametric wind trade on AkinovA, a broker-centric electronic marketplace.

akinovaThis is the first weather transaction to be completed on the platform and opens up a new, yet tested, channel for similar deals.

The twelve-month parametric wind instrument was purchased by a European asset owner in the advertising industry looking for alternative ways to protect their interests in Northern Europe.

The product provides incremental coverage if gust wind-speeds are observed above pre-defined limits at weather stations near a precise set of billboard locations.

With the hurricane season due to start officially next month, brokers and cedants will be considering a range of risk transfer mechanisms to efficiently cover weather-related exposures.

“RKH Reinsurance Brokers is delighted to have transacted this complex risk on the AkinovA Marketplace,” said Nick Griffiths, Executive Director of RKH Reinsurance Brokers.

“Providing innovative parametric structures and triggers for clients to address protection gap concerns is becoming increasingly important, especially when there is so much business uncertainty on a global level. We particularly liked AkinovA’s approach to building a digital marketplace and ecosystem with brokers as partners.”

Edern Le Roux, Head of ILS and Cat Modelling Descartes Underwriting, added, “In today’s digital age, clients call for more straightforward products with clarity on risk transfer and payments.

“We are particularly pleased to work with AkinovA as their digital first marketplace is ideal for us to structure innovative products in partnership with brokers and capacity providers and provide unique cover for corporates.”

AkinovA has already successfully completed a number of cyber trades on the platform, including parametric cloud outage and parametric power network disruption, and continues to broaden into other product lines.

Henri Winand, AkinovA CEO, commented, “This weather-related insurance trade underlines AkinovA’s reach across different lines of business beyond cyber risk transfer. In fact, we are now involved in a number of different trades across a variety of risk classes.
“We were particularly pleased to work with Descartes Underwriting to promote clear and transparent parametric products which are much needed to underpin scalable climate resilience.”

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