Andrew Land
speaker
155 appearances
2 recordings
1 series
first heard Jul 2021
last heard Aug 2022
Andrew Land’s voice in public audio — every appearance, attributed to the second.
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Appearances
And so I suppose that the implications for the traditional insurance market are are quite material because the whole process of assessing a claim is effectively mitigated.
There's no need for that because the contract will pay out or or it won't pay out.
And as you said, the if you have accurate technology which the underwriter accepts and which the insured party also accepts, then the efficiency of that is is massively increased.
Understood.
And if you if you look at the parametric market today, Charlie, and and sort of there's obviously a number of innovative products, do you think over the next five or six years you'll see that market increase in size?
You know, are with with with the combination of data and technology, is that going to open up
more conventional insurance markets in commercial insurance, personal insurance, or do you think it'll stay very much in a in a very specific set of cases?
Well, uh uh, as you were talking, Charlie, that was that was going to be my next question, which was the traditional insurance market and the traditional insurance carriers have to have a very large back office doing underwriting assessment and claims management and such like.
I guess with parametric.
In theory, any financial investor could write one of these policies, understand what the return on that sort of capital risk looks like, and essentially make make the decision about whether to do it without the need for all of the um the sort of uh traditional claims methodologies, because ultimately, as you say, it is a
It is a binary outcome.
And and Charles, just on that then, it'd be interesting to think about the the economics.
What I'm what I'm assuming you're saying is that if I'm a traditional investor, I'd put say five million dollars on the table as the potential loss if the parameter is triggered.
And then the premium that I receive would be seen as the, as you say, the coupon or the income on that investment for a 12 month period.
And then there's a percentage chance that I lose a hundred percent of my capital.
Exactly.
But that percentage is probably rather low, I would imagine.
Yeah.
Well, Charlie, perhaps if we could move on to the topic you mentioned at the beginning around sustainability.
And I believe that at Howden, you've been looking at a number of disaster relief products and bonds which follow this parametric process, whereby various charities can get, again, effectively cash up front in the event of a natural disaster, whereas they'd otherwise be
Showing 101–120 of 155 · page 6 of 8
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