For Kirill Savrassov, chief executive of Bermuda-based Phoenix
CRetro, such events serve as a reminder of the potentially important
role that insurance-linked securities (ILS) based on parametric triggers
could play in the region to help cover some of the growing risks in
Eastern Europe and Western areas of Asia.
Savrassov stresses that for a range of historic reasons insurance
penetration remains very low in the various countries of the former
Soviet Union, in Turkey and in parts of former Yugoslavia. Those
In September a 5.8 magnitude earthquake shook Istanbul,
triggering the evacuation of schools and public buildings and
damaging buildings. The same week, a 5.8 magnitude event
killed 38 people and caused massive damage to infrastructure
and roads in north-eastern Pakistan.
For Turkey it represented a stark reminder of how bad these events
can be. In 1999, a 7.4 magnitude earthquake in the western part of the
country killed more than 17,000 people.
Belt & Road
China’s Belt and Road Initiative, the economic
project which aims to recreate the ancient Silk Road
that linked Europe to Asia, needs protecting. ILS could
provide the perfect solution, as Kirill K. Savrassov,
chief executive of Phoenix CRetro Reinsurance
Company, tells Bermuda:Re+ILS.