As the insurance and reinsurance market responds to the growing risk capacity needs of the digital infrastructure and data centre build-out, collateralized insurance-linked securities and parametric risk transfer are playing a role in covering exposures such as correlated power grid events, according to Guy Carpenter’s Jeremy Goodman.
Speaking yesterday during a webinar on the digital infrastructure opportunity, the reinsurance broker’s Chief Client and Growth Officer explained the need to shift the reinsurance sector’s mindset from one focused on providing transactional capacity, to a focus on creating a structural capital architecture.
First, Goodman explained the size of the data centre and digital infrastructure risk transfer opportunity, which has become one of the biggest talking points across insurance and reinsurance markets over the last year and increasingly is seen as a capital markets opportunity for ILS investors as well.
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