Standardisation would increase use says Allianz Re

Clemens von Weichs, head of the Allianz’s reinsurance unit has demanded that insurance-linked securities such as catastrophe bonds be standardised made more affordable, Bloomberg reports.

“We should move from handmade to manufactured to be able to bring securitisations at a much cheaper price to the market,” von Weichs said in Baden-Baden.

“They are a good tool. The time to construct a securitisation is after four to six months with many people involved.

Will not replace reinsurance

“We are convinced that the securitisation of insurance risks will expand as a risk-management instrument. They will continue to complement traditional reinsurance, but not replace it.

“Securitisations should expand into other lines of business. There are some solutions with regard to automobile risks or trade credit insurance risks, but these were all one-day-wonders and not really convincing solutions.”