AGCS Asia Pacific grows with new Alternative Risk Transfer line of business

Allianz Global Corporate & Specialty SE (AGCS) is expanding its Alternative Risk Transfer (ART) line of business to the Asia Pacific region, and in a related move, announced the appointment of Richard Green as Regional Head of ART, Asia Pacific, with effect from 15 October 2018.

Richard Green, who will head the new unit as Regional Head of ART, Asia Pacific, has over 20 years of experience in alternative risk transfer and related fields. Based in Asia since 2005, he was most recently the Regional Head of ART and Cyber Insurance for a global broker, and developed a wide range of solutions including residual value, weather parametrics, loss portfolio transfer, non-damage business interruption, and risk financing while in his previous role. At AGCS, Richard will be responsible for underwriting execution of both the new ART line of business as well as Capital Solutions in Asia Pacific. He is also responsible for developing and executing global strategy for both ART and Capital Solutions LOB underwriting and business development in order to drive profitable growth within the region.

ART creates tailored insurance, reinsurance and other non-traditional risk management solutions for corporate, insurance and investment clients worldwide. It aims to fill an exposure gap that arises when traditional (re)insurance is inadequate in dealing with unusual, emerging or complex risks. Using both (re)insurance and financial market techniques, ART provides bespoke solutions that are specifically designed to meet the requirements of an individual client and take a holistic view of their risk exposure across various lines of business.

AGCS has seen an increase in demand for alternative risk transfer solutions in the region as large companies seek to assume more control over their risk management and transfer. These companies turn to ART for solutions as they increasingly take on more risk that cannot be covered under traditional markets and look to protect themselves against losses that could cost millions of dollars.

Mark Mitchell, Regional CEO, Asia Pacific, said: “Alternative risk transfer is not a new concept to the region and we have had success with ART solutions here in the past. However, such business within Asia Pacific has traditionally required bringing in the expertise of colleagues from other regions. In light of the increasing awareness and demand for the value of ART solutions regionally, I believe the time is right to build a dedicated team around Richard Green to drive business and improve on our value proposition to clients.”

AGCS recently announced that reorganization of the ART line of business into two separate teams. In its previous ‘combined’ set-up ART has developed into a major line of business for AGCS globally, contributing EUR 1.135 billion of gross written premiums in 2017, including fronting revenue.

AGCS’ ART team provides a tailored range of solutions for customers facing specific challenges:

• Corporate solutions look to fill risk exposure gaps for large corporate clients that are not catered to by traditional markets. These normally take the form of a bespoke multi-year and multi-line solution that takes into account risk exposure across different lines of business and focuses on areas that may result in a material financial loss.
• Climate solutions aim to mitigate all weather related events and risks for clients, and provide products and solutions that can be complementary to existing and/or traditional products. These tailored solutions address protect against weather effects negatively impacting financial performance or business operations, and are an important element of comprehensive risk management for businesses that are affected by or dependent on the weather.
• Reinsurance solutions involve bespoke fronting programs that provide access to the Allianz Group’s worldwide network of insurance carriers and partners. ART’s reinsurance solutions can be employed regardless of whether the client has a captive or not.

 

Allianz Global Corporate & Specialty (AGCS) is a leading global corporate insurance carrier and a key business unit of Allianz Group. AGCS provides risk consultancy, Property-Casualty insurance solutions and alternative risk transfer for a wide spectrum of commercial, corporate and specialty risks across 12 dedicated lines of business.

Our customers are as diverse as business can be, ranging from Fortune Global 500 companies to small businesses, and private individuals. Among them are the world’s largest consumer brands, tech companies and the global aviation and shipping industry, but also wineries, satellite operators or Hollywood film actors. They all look to AGCS for smart answers to their largest and most complex risks in a dynamic, multinational business environment and trust us to deliver an outstanding claims experience.

We constantly strive to deliver the best for our customers through our global team of around 4,400 employees from over 70 nationalities in 34 countries worldwide. As the one of the largest Property-Casualty units of Allianz Group, we are backed by strong and stable financial strength ratings and a global network in over 200 countries and territories. In 2018, AGCS generated a total of €8.2 billion gross premium worldwide.

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