Howden, the global insurance and reinsurance broking and underwriting group, has launched a new Howden Climate Parametrics unit, to bring together its parametric risk transfer, climate risk and resilience, capital markets and insurance-linked securities (ILS) expertise, to deliver responsive risk transfer solutions.
First reported by Reuters, Howden is targeting the climate and nature based risk transfer sectors, as well to the delivery of risk transfer solutions that can support the transition to a low-carbon economy and protect biodiversity, with the launch of Howden Climate Parametrics.
The unit will have a team of more than 30 staff, with expertise drawn from across the Howden business.
This will involve analytics and advisory, structuring and placement, underwriting and capital markets, the company explained.
It’s important to note the bringing together of capital markets, or insurance-linked securities (ILS) expertise and capacity sourcing with this initiative, as the deployment of efficient capital alongside responsive risk transfer solutions could make for a more compelling offering.
Also demonstrating a joined-up approach across the Howden Group businesses, the company has said that the Climate Parametrics unit will be co-led by Rowan Douglas, recently-appointed CEO of Climate Risk and Resilience at Howden, and Philipp Kusche, the Global Head of Insurance Linked Securities at reinsurance and risk capital focused arm Howden Tiger.
Kusche commented on the launch, “Howden is scaling up and enhancing its capabilities to lead the market response to climate change.”
Parametric insurance, reinsurance and risk transfer solutions are seen as critical in narrowing protection gaps around the world, as well as creating new risk products for climate related exposures that are uninsured today, protecting nature and biodiversity assets, delivering risk solutions to support climate transition projects, and protecting renewable energy assets and generation.