{"id":732,"date":"2025-08-07T07:00:53","date_gmt":"2025-08-07T07:00:53","guid":{"rendered":"http:\/\/fictionuncovered.com\/?p=732"},"modified":"2025-08-07T15:47:24","modified_gmt":"2025-08-07T15:47:24","slug":"ai-solutions-can-shorten-catastrophe-bond-timelines-improve-investor-confidence-gallagher-re","status":"publish","type":"post","link":"http:\/\/fictionuncovered.com\/index.php\/2025\/08\/07\/ai-solutions-can-shorten-catastrophe-bond-timelines-improve-investor-confidence-gallagher-re\/","title":{"rendered":"AI solutions can shorten catastrophe bond timelines, improve investor confidence: Gallagher Re"},"content":{"rendered":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

As per a new report from reinsurance broker Gallagher Re, artificial intelligence (AI) solutions can significantly contribute to reducing the time needed to create new catastrophe bond structures, which may ultimately enhance the confidence of prospective investors in the market.
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\n\"gallagher-re-logo\"We have previously reported on how enhancements in catastrophe risk modeling driven by AI<\/a> can facilitate an increase in future transactions within the cat bond market.<\/p>\n

This topic was also reviewed last year by executives from the World Bank.<\/a><\/p>\n

Now, Gallagher Re has tackled the subject, by stating that AI plays a \u201cpivotal role\u201d within the cat bond market.<\/p>\n

\u201cBy significantly enhancing the reliability and efficiency of catastrophe risk modeling, AI-powered solutions can shorten the time required to develop new cat bond structures and improve the confidence of potential investors,\u201d the broker explained.<\/p>\n

Of course, this is particularly relevant for perils such as earthquakes and hurricanes, which are known for dominating the cat bond space.<\/p>\n

The broker also goes on to explain how AI tools will become increasingly central towards how reinsurers optimize their capital deployment.<\/p>\n

\u201cBy more accurately modeling the complex interplay of various perils, understanding previously hidden correlations, assessing the benefits of geographic and peril diversification, and stress-testing portfolios against future climate scenarios, AI will guide more efficient and resilient capital strategies,\u201d Gallagher Re said.<\/p>\n

The broker continued: \u201cReinsurers will also be able to leverage AI-driven insights to provide more valuable and proactive advisory services to their cedants \u2013 whether that\u2019s guidance on managing specific catastrophe exposures, optimizing underwriting practices, or implementing effective mitigation strategies.\u201d<\/p>\n

However, to achieve this, the broker observed that reinsurance executives need to commit to investing in AI, which involves putting the required resources into building robust data infrastructure capable of handling vast and varied datasets.<\/p>\n

As per Gallagher Re, this includes developing data governance frameworks, ensuring data quality, and fostering a culture of data-driven decision making.<\/p>\n

However, it\u2019s also important that the ILS market and its participants commit to investing in AI solutions too, so that they can benefit from the advances that the technology brings towards the market, and don\u2019t fall behind.<\/p>\n

Global Deputy Head of InsurTech Freddie Scarratt, commented: \u201cIn the years to come, the adoption of AI will become a significant competitive differentiator for property reinsurers.<\/p>\n

\u201cThose that effectively integrate it into their core processes \u2014 from risk assessment and pricing to claims management and capital allocation \u2014 will gain an edge in a challenging market.\u201d<\/p>\n

Adding: \u201cAnd as the reinsurance industry evolves to better manage the increasing threat from catastrophes, this will ultimately contribute to a more stable market, capable of supporting communities and economies in the face of adversity.<\/p>\n

\u201cThe journey into AI\u2019s frontier is not just about technological adoption; it\u2019s about reshaping the future of risk transfer itself.\u201d<\/p>\n

There are so many technology touch-points already in the catastrophe bond and insurance-linked securities (ILS) market\u2019s processes and workflow that over-time will be optimised and enhanced using artificial intelligence.<\/p>\n

In addition, the ILS and also wider reinsurance market remains slowed by manual processes and human interactions and, while the relationship remains critical, even here there are opportunities to optimise and increase efficiency.<\/p>\n

As AI optimisation and advancement runs through reinsurance and investment markets, the ILS sector and its constituents are set to benefit.<\/p>\n

AI solutions can shorten catastrophe bond timelines, improve investor confidence: Gallagher Re<\/a> was published by: www.Artemis.bm<\/a>
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. As per a new report from reinsurance broker Gallagher Re, artificial intelligence (AI) solutions can significantly contribute to reducing the time needed to create new catastrophe bond structures, which may ultimately enhance the confidence of prospective investors in […]<\/p>\n","protected":false},"author":1,"featured_media":707,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[20],"tags":[],"_links":{"self":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/732"}],"collection":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/comments?post=732"}],"version-history":[{"count":2,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/732\/revisions"}],"predecessor-version":[{"id":734,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/732\/revisions\/734"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/media\/707"}],"wp:attachment":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/media?parent=732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/categories?post=732"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/tags?post=732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}