Ten C’s, a start-up formed to develop an affordable and effective insurance solution, has developed a new parametric disaster response solution.
The new start-up was founded by Patrick Kelahan of H2M and Marcus Schmalbach, CEO of Ryskex GmbH. Joerg Proeve, an insurance veteran and consultant, joined Ten C’s to further build out the solution and establish a global team of data scientists, artificial intelligence (AI), insurance, blockchain, and risk transfer experts.
Schmalbach outlined that events such as the ongoing COVID-19 pandemic, are generally considered uninsurable, suggesting that new solutions are needed, especially for Fortune corporations.
He noted that parametric solutions “are very easy to understand and do not require traditional insurance wordings, which offers the possibility to win the capital market (insurance-linked securities or hedge funds) as risk-takers”.
Ten C's has revealed it would also like to design a parametric risk trading solution for potential black swan events triggered by cyber, pandemic or climate change.
Schmalbach stated that support is provided by new technologies such as blockchain for sales and the claims settlement process and AI for pricing and developing a "VUCA World Index".
He explained that the parametric disaster response solutions will be distributed and adopted via the RYSKEX platform in cooperation with cover holders from the global capital market. The target market for the purchase of hedging is captive owning companies and S&P 500 corporations.
In addition, Ten C’s will join the Lloyd’s Lab Fusion programme, which is scheduled for 21 to 23 July to collaborate with Lloyd’s managing agents and major insurance carriers to advance this innovative parametric disaster response solution to tackle pandemics and systemic risks.
During the Lloyd's Lab Fusion programme Ten C’s will be supported by Lloyd's as well as Apollo (Lloyd's Syndicate), Munich Re and AXIS Capital.
Lloyds Lab Fusion programme is aimed at start-ups which develop solutions for systemic risks.