Sector developments and company hires

Risk advisory appointment inked
African Risk Capacity (ARC) has selected Gallagher Re as its reinsurance broker and risk advisor. The appointment includes the placement of portfolio cover in the reinsurance and capital markets, and the provision of strategic advisory for sustainable growth and portfolio diversification. The design of alternative risk transfer mechanisms, such as ILS, is a core component of targeted development plans.

ARC is a specialist insurance company that provides parametric insurance cover to African countries against climate and disaster events. The company’s ambitious growth plans foresee combined use of traditional and alternative capacity providers as part of a unique risk carrier structure that aims to leverage the private sector for a wide range of resilience applications across Africa.

In particular, ARC seeks to strengthen the capacity of member states to minimise the risk and actual impact from catastrophic events, as well as provide targeted and swift access to finance, tools and products in the aftermath of disasters. To date, the company has provided financial protection in excess of US$1bn to 19 countries. It says it aims to reduce the protection gap even further and its partnership with Gallagher Re will form a key element of this growth.

Following the signing of a Memorandum of Understanding last November between ARC, CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) and the Pacific Catastrophe Risk Insurance Company (PCRIC) – and as lead and sole broker to all three developmental insurance risk pools – Gallagher Re is now uniquely placed to support the goals of the MoU, which is to raise their global visibility, reach and influence.

In other news…

Insurtech platform acquired
Arch Insurance has acquired Thimble, a digital platform for small business customers and agents, for an undisclosed sum. Since May 2018, Thimble has delivered more than 170,000 policies to small businesses across the US. The Thimble team will continue growing the business with its existing carrier partners and offer new solutions through Arch.

North America
Swiss Re has named Jean-Louis Monnier global head of ILS, having appointed him as ceo of Swiss Re Capital Markets Corp in November 2022 (SCI 17 November 2022). Based in New York, Monnier joined the firm as director in April 2002 and worked at Gen Re Financial Products, CIBC and Societe Generale before that.

RFC issued on SFDR amendments
The EBA, EIOPA and ESMA have published a consultation paper with amendments to the Delegated Regulation of the SFDR. The ESAs are proposing changes to the disclosure framework to address issues that have emerged since the introduction of the regulation.

Specifically, the authorities are seeking feedback on amendments that envisage: extending the list of universal social indicators for the disclosure of the principal adverse impacts of investment decisions on the environment and society, such as earnings from non-cooperative tax jurisdictions or interference in the formation of trade unions; refining the content of other indicators for adverse impacts and their respective definitions, applicable methodologies and formulae for calculation, as well as the presentation of the share of information derived directly from investee companies, sovereigns, supranationals or real estate assets; and adding product disclosures regarding decarbonisation targets, including intermediate targets, the level of ambition and how the target will be achieved.

Moreover, the ESAs are proposing further technical revisions to the SFDR Delegated Regulation by: improving disclosures on how sustainable investments ‘do not significantly harm’ the environment and society; simplifying pre-contractual and periodic disclosure templates for financial products; and making other technical adjustments concerning the treatment of derivatives, the definition of equivalent information and provisions for financial products with underlying investment options.

Comments on the consultation paper can be submitted until 4 July, after which the ESAs will prepare a final report and submit it to the European Commission.