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PublicationHandbook of Political Risk Insurance(Institute of Insurance Economics IVW-HSG, 2018-05-31)
PublicationAssekuranz 2025: Quo Vadis?Type: bookVolume: Band 63
PublicationThe Current InsurTech Landscape: Business Models and Disruptive PotentialWe take a detailed look at the current InsurTech landscape from the angle of the academic management literature. Our main goals are to establish a common understanding of key concepts, to facilitate the navigation of this rapidly evolving sector, and to provide an intuitive toolkit for an assessment of the entrants’ disruptive potential as well as the selection of adequate response strategies by incumbents. Based on a threedimensional taxonomy, we screen the existing InsurTech startup range. Two aspects stand out in this regard. First, although the vast majority of activities still focuses on the distribution part of the industry ecosystem, full-stack InsurTech risk carriers are starting to become more commonplace. Second, we hardly observe any real game-changing business model innovations yet, as many existing startups are essentially pepping up classical industry approaches with the patterns “e-commerce” or “digitization”. Consistent with this observation, most entrants are not on a disruptive trajectory. Instead, they can be assigned to the category “enablers”, suggesting “cooperation” as the incumbents’ reaction of choice for the majority of currently prevailing scenarios. These findings are confirmed by a comprehensive survey among startups and incumbents. Several directions for the future evolution of the sector are plausible. We identify a number of powerful business model recombinations that are either already launching or clearly visible on the horizon. The largest threats are likely to arise from out-of-the box approaches. One example are digital insurers that add significant value for the customer through personalized coverage based on a comprehensive individual risk assessment. Similarly, genuine peer-to-peer concepts, which enable risk transfer directly to the capital markets, could call the primordial relevance of insurance companies into question and therefore lead to outright disintermediation. Consequently, the still relatively comfortable situation for incumbents that currently prevails may not last for long.
PublicationAlternative Risk Transfer and Insurance-Linked Securities: Trends, Challenges and New Market OpportunitiesDue to their relatively high yields and low return correlations with traditional asset classes, insurance-linked securities (ILS) are often described as an attractive investment opportunity. Yet, the investor base for ILS is largely dominated by a few specialized investment managers. The aim of this paper is to analyze advantages and disadvantages, the current market development and the decision-making processes that drive the demand for this aspiring asset class. To reach this aim, we first review the existing knowledge on ILS instruments and markets, then present results of a new international survey among ILS Investors and finally, based on the results of the first and second step, derive implications for the future development of ILS. The key findings of our study can be summarized as follows: To date, transaction costs along with lacking experience / knowledge and regulatory uncertainty are the most significant impediments to ILS market expansion. Skin in the game is necessary to attract investors; we show that a 5 to 10% sponsor investment leads to large increases in the willingness to invest. We observe that investors do not consider ratings as necessary and that having no rating is better than having a bad rating. Overall, the ILS market is likely to grow substantially over the next years; the survey participants expect its volume to double by 2019. In this context, we discuss the role of new instruments such as protected cell companies and new types of risks such as cyber risk, high frequency risks or run-off risks.
PublicationAufsicht über die berufliche Vorsorge: Internationaler VergleichType: bookIssue: Forschungsbericht Nr. 12/10