Reinsurance trio to offer business resilience policy
Three of the world’s largest reinsurers have entered into an innovative deal to offer a large corporate a five-year Business Resilience Insurance Policy via its captive, which provides it with a connected risk outcome-based solution.
The deal emerged from a working group run by Russell Group. Initially, the outcome-based solution is part of a complex structured policy that includes an element of risk financing against a range of major events, with minimal exclusions. There is anticipation that, as the exposures become better understood, there will be an industry shift to offer this form of risk transfer.
In 2014, Russell launched Connected Risk in a thought leadership campaign. Then, in 2018, Russell formed its Corporate Working Group, a collection of leading corporates, with a mandate to deliver a connected risk solution. In 2024, this group has 33 corporates involved, of which half are FTSE 100-listed companies.
“We believe this is the future of global corporate re/insurance.”
Russell Group managing director Suki Basi said: “Innovation has been a buzzword in the industry for years, but the real mark of being a pioneer is to have the transforming skill to enable cycles of innovation to be realised. We always recognised that increasing global connectivity would lead to a more far-reaching threat event landscape that would change the shape of risk.
“In response to the feedback from our Corporate Working Group we are now building a new market for connected risk outcome-based solutions. We believe this is the future of global corporate re/insurance, which is why our mission at this year’s Monte Carlo Rendez-Vous 2024 is to build capacity for connected risk.”
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