This page contains a Flash digital edition of a book.
Powered by:


MONTE CARLO TODAY Wednesday September 16, 2015


State-backed cyber pool must be formed before cataclysmic attack hits


T


he risk transfer industry and governments should partner to form a state-backed risk


pool designed to cover worst-case scenario cyber attacks, Stephen Catlin, the executive deputy chairman of XL Catlin, told Monte Carlo Today. The former chief executive of Catlin said


that a devastating and/or prolonged cyber attack is the most serious threat facing society and one of the few that could have truly global implications. Yet governments are ill-prepared for such a scenario and the industry is very limited in its ability to help. Only a partnership and the formation of some kind of risk pool could help mitigate the consequences of such a scenario. “Terrorism is a relatively local threat,” Catlin said. “So are


earthquakes and hurricanes.


But a cyber attack has the potential to affect the entire world in a nanosecond. As things stand, governments are ultimately exposed to anything happening on this front, which means we are all personally exposed. “We all live through the internet these days.


If someone was able to knock the entire internet down, the whole economy would fall apart very quickly. It would be very painful for society. “I believe a mechanism could be put in place


Stephen Catlin


to move a chunk of this risk into the private sector. We manage to do it for terrorism risk, through mechanisms such as the Terrorism Risk Insurance Act (TRIA) in the US and Pool Re in the UK, (Continued top of page 2)


What’s inside


CHINESE RATINGS AGENCY OFFERS NEW APPROACH


HANNOVER RE SEEKS INVESTORS FOR ILS FUND


ASTA PLOTS MORE HIRES TO GROW IN MGA SPACE


AMLIN-LEADENHALL PARTNERSHIP BENEFITS BOTH


GROWING INFLUENCE OF ASIAN PLAYERS REFLECTED AT RENDEZ-VOUS


TIERING WILL CONTINUE TO SHRINK P/C LANDSCAPE: SCOR


IUMI CALLS FOR ACTION TO PREVENT CARGO THEFT


ROUNDTABLE: THE EVOLUTION OF ALTERNATIVE CAPITAL


MORE MGAS SEEK CAPITAL PARTNERS ON SIDECARS


WE WON’T BE DITCHING OUR REINSURERS: NOVAE


TMR’S CAPITAL SOLUTIONS LAUNCH PROVES COMMITMENT TO SPACE


NIMBLE ARGO TARGETS CHINA VIA NEW LLOYD’S SPS


SAACKE SETS SIGHTS ON TOP 10 FOR QATAR RE


Generali will re-enter ILS but balance with reinsurance G


enerali will continue to access the insurance-linked securities (ILS)


market, especially to offset European windstorm risk due to the attractive terms available. But it will also balance this with traditional reinsurance, seeking the most effective mix for its portfolio. Franco Urlini, group head of reinsurance,


Generali, which issued its first cat bond last year, told Monte Carlo Today that having monitored the ILS markets for many years, the


use of cat bonds was made possible when the company centralised its reinsurance purchasing programme. Before


this, a concentration of Italian


earthquake risk in its portfolio made such a deal less viable. Because reinsurers see this risk as an “attractive diversifier” on their books, it was already benefiting from very competitive rates in the traditional market. “The reason we did not enter the market before is mainly related to the peculiarities


www.intelligentinsurer.com | www.bermudareinsurancemagazine.com


of our portfolio, which used to be largely dominated by Italian earthquake exposures,” he said. “We now have important exposures in


European windstorm that the ILS market offers attractive terms for. In the future we will continue to look at the traditional market as well as the ILS market and at any new products available, and we’ll always use the most effective and competitive tools available, including cat bonds.” (Continued bottom of page 2)


DAY 4: Wednesday September 16 2015 | MONTE CARLO TODAY | 1


DAY 4


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28