MIAMI & LONDON--(BUSINESS WIRE)--Augment Risk, an innovative reinsurance broker that offers bespoke solutions to its partners, today announced the launch of its Global Parametric Specialty division. Augment Risk was established earlier this year and has placed over $1 billion of premium to the reinsurance market, a testament to the firm’s innovative approach to delivering growth and increased enterprise value for its clients.
Kurt Cripps joins Augment Risk to lead a highly experienced team focused on client tailored parametric reinsurance products designed to provide a surgical approach to managing CAT exposures. Augment Risk’s parametric placements are designed to enhance the traditional client operating model through a fast and currently unrivaled claims recovery process, bringing a new option to clients in the wake of challenging property cat reinsurance market conditions.
Augment Risk’s Global Parametric Specialty is dedicated to promoting and implementing tailored index-based risk transfer solutions to clients across the globe. Cripps, who previously held positions of Managing Director and Global Head of Weather within Aon Reinsurance Solutions, will champion the normalizing of index-based products within the reinsurance market with a heightened focus on creating client enterprise value.
”I’m excited to be joining such a progressive organization as Augment Risk, especially at a time when the reinsurance industry is undergoing this profound change. We want to focus on the benefit that a parametric product can bring to our clients; a highly efficient claims recovery process, improving opportunity costs and a much greater transparency around reinsurance efficiency. Add to this the very real threat associated with climate change, and the need for finding new and more effective solutions has never been more acute,” Cripps said.
“Fundamentally with reinsurance costs rising, higher deductibles, reduced limits, and self-insured retention increasing, clients are having to manage a far greater degree of risk. Parametric coverage has never been a more viable and affordable alternative, whilst also providing clients the comfort that risks are managed in the most efficient and cost effective way. The traditional way of managing risk isn’t as available or sustainable anymore, so now is the time to do something different.”
“By improving reinsurance purchasing efficiency in this way, we can remove threats associated with loss creep, secondary perils, extensive settlement periods, fraud and in worst case scenarios, arbitration/litigation so often seen in the traditional market. This creates huge security and value to a client’s risk management strategy by giving them back the value of time and most importantly their capital.”
Parametric solutions are increasingly utilized in sophisticated modern day risk transfer and have been offered as a solution to hardening market conditions. According to Allied Market Research, the global parametric insurance market is projected to triple within the decade to an estimated $29.3 billion by 2031.
Augment Risk’s Parametric Specialty division will initially focus on assisting Captives, Insurers, Reinsurers and ILS firms manage their global exposures to Natural Perils (Windstorm, Earthquake & Wildfire), with the ambition to significantly impact the proportion of catastrophe premium currently in the market by moving to index-based solutions and complementing a clients current buying dynamic.
About Augment Risk
Augment Risk is a risk capital and reinsurance solutions broker, focused on designing and placing bespoke protections for a variety of clients. With a wide range of solutions, Augment creates growth and equity value through tailored transactions to deliver long-term capital and partnerships. Augment Risk’s expertise extends beyond (re)insurance, allowing the company to disrupt the value chain and build creative, value-accretive solutions for individual client needs. For more information, please visit www.augmentrisk.com.
