Hannover Re and Schroders Capital: Pioneers in Tokenised ILS
The world of insurance-linked securities (ILS) has just taken a significant leap forward. Hannover Re, a leading reinsurance company, has teamed up with Schroders Capital to launch a groundbreaking tokenisation pilot. This innovative project enables reinsurance contracts to be tokenised and traded on a public blockchain platform, utilising smart contracts.
Reinsurance contracts get a digital makeover
The pilot’s core feature is the integration of crucial catastrophe insurance data into the smart contracts. This allows for automatic payment triggers to the appropriate recipients in the event of specific natural disasters. Furthermore, investors can now hold tokens in their digital wallets alongside other digital investments.
Blockchain Technology: Enhancing Transparency and Efficiency
This collaboration is the result of over a year of hard work between Schroders, Hannover Re, and the i.AM Innovation Lab, under the oversight of the Guernsey Financial Services Commission. The success of this pilot showcases the immense potential for enhancing transparency, streamlining investment processes, and improving client experience in the reinsurance sector.
The future of ILS investments
“The success of this pilot showcases the immense potential for enhancing transparency, streamlining investment processes, and improving client experience in the reinsurance sector,” notes Stephan Ruoff, co-head of Private Debt and Credit Alternatives at Schroders Capital.
A New Era for ILS Investments
The project paves the way for a more interconnected and efficient digital ecosystem. Hannover Re’s managing director of Retrocession and Capital Markets, Henning Ludolphs, adds, “This proof of concept was a great opportunity to understand the capabilities of blockchain technology when applied to the reinsurance market.”
A new era for ILS investments
The Future of Retrocession Capacity
While this is an emerging technology, Hannover Re anticipates more appetite for blockchain-enabled investments in the future. This pilot prepares them well to evolve their approach to generate further retrocession capacity via a different source.
The future of retrocession capacity
