Categories ArchivesNews and Analysis

When It Comes To Cryptocurrencies And The SEC, Decentralization Is Key link

The SEC’s increasingly favorable posture towards decentralized cryptocurrencies, such as Bitcoin and Ether, signals that a bellwether regulatory regime is emerging and with it a pathway for broader institutional adoption. This favorable view on decentralized cryptocurrencies does not necessarily reduce the risk in the asset class, as cryptocurrencies have the highest implied volatility of any asset around – especially during these years of growing pains. It does, however, suggest the entrance of institutional investors with decidedly steadier hands is nigh, due in no small measure to growing regulatory clarity. These investors will invariably bring better controls than the early adopter crypto-speculators that are fueling the roller coaster ride, but who have been essential in their commitments to “hodling” and moon ...

Continue Reading

May The Trump-Kim Summit Produce A Better Outcome Than The G7 link

When President Trump was elected his posture on global trade and the international system were quite clear. The campaign slogan “Make America Great Again,” rooted in economic nationalism, says it all, and it should be no surprise that the U.S. has opted for unilateralism when it comes to key issues from trade to international security. The disarray left in President Trump’s wake at the G7 meeting of rich nations signals just how seriously the White House is taking its economic and foreign policy strategy. Embers of a growing trade war now loom large over the global economy. From the U.S. vantage point, trade tensions now include the northern border with Canada’s affable Prime Minister Trudeau drawing the ire of Trump’s ...

Continue Reading

Coming Soon to a City Near You – $320 Billion in Economic Losses link

First launched in 2015, an update to the Lloyd’s City Risk Index, a collaborative effort with the Centre for Risk Studies at Cambridge University, acknowledges that we are firmly in the era of man-made risk (a handy survival guide is available). The so-called Anthropocene, a new geologic age that began circa 1950 with the rise of urbanization and mega cities would correspondingly tilt the scale of global risks away from natural perils. When it comes to responding to natural hazards, notwithstanding perilous rates of underinsurance and the protection gap, the capital markets have responded affirmatively with a range of innovations, such as insurance, catastrophe bonds and other instruments. The challenge, as reflected in the Index, is that man-made risks, such ...

Continue Reading

Make America Resilient Again link

A particularly damning report published by the New England Journal of Medicine, which can hardly be characterized as fake news, shows the likely death toll in Puerto Rico following hurricane Maria is closer to 5,000, rather than the politically stubborn figure of 64. With this tragic revision, which bucks the narrative that Puerto Rico was not a real catastrophe because the body count was low, the devastation wrought by hurricane Maria is undeniable – and the island-wide war trauma understandable. This report also confirms what many Puerto Ricans have felt for years, which is that despite U.S. citizenship as a birthright, they are a de facto second-class – a dubious distinction shared by poor and marginalized communities on the U.S. ...

Continue Reading

Bloomberg: The Energy Grid Isn’t Insured Enough to Handle a Catastrophic Hack link

Insurers are limiting how much coverage energy companies can buy to protect themselves against a major attack by hackers, potentially leaving investors, customers and taxpayers on the hook for sizable losses. Brit Insurance, a syndicate that works with Lloyd’s of London, limits cybersecurity policies to around $300 million, according to underwriter James Bright. While companies can piece together policies from different insurers to boost that limit, the costs can be prohibitive, often requiring third-party assessments of security that can need upgrading. The result is an industry largely unprepared for a hacker-triggered catastrophe, according to cybersecurity experts. The Exxon Valdez oil spill cleanup, for instance, cost $7 billion. Those kind of numbers have left insurers anxious over the lack of quantifiable ...

Continue Reading

Ledger Insights: Blockchain for Insurance – opportunity or existential threat? link

At last week’s Blockchain in Insurance Summit, there were contrasting views about the potential for blockchain. The majority of incumbents focus on the efficiencies that blockchain digitization can bring. Others see this as ignoring the transformational potential of the technology. One compared insurance to being “print media and the internet just showed up.” Dante Disparte, CEO of Risk Cooperative didn’t pull his punches. “If there’s one takeaway I have from the conversations over the last few days it’s that the technology gap isn’t the biggest gap or the biggest chasm to cross. It’s the cross arm leadership culture that has ossified in the insurance industry, where status quo is safe. And breaking from status quo is ultimately what a lot ...

Continue Reading

Our Economic Model Is Out Of WACC link

The profit motive, which has driven private enterprise since prototype multinationals emerged more than 500 years ago, such as Portugal’s Casa da Índia or the British East India Company, is arguably a successful, if controversial, facet of business. Indeed, nothing has lifted more people out of poverty than private enterprise, despite the irony that severe income inequality is one of the top global threats, along with climate change, pandemics and the erosion of institutional trust. Singular focus on profits (and self-advancement) invariably perpetuates this income disparity. Yet, the profit motive and the financial myopia it creates causes problems of its own. For one, far too many businesses are trapped in a zero-sum game of he who has the lowest weighted ...

Continue Reading

With Blockchain Insurers Opt For Coopetition link

At the Blockchain for Insurance summit in London, a gathering of major insurance players, technologists and thought leaders promoting digital transformation using blockchain, a clear pattern is emerging. While the $5.5 trillion global insurance industry is an otherwise fiercely competitive market, when it comes to the adoption of blockchain or distributed ledger technologies, industry titans, such as Swiss Re, Zurich, Aegon and others, are opting for coopetition and a shared services approach, rather than embracing opportunities for internally-driven disruptive innovation. This consortia approach, under the banner of initiatives like Swiss-based B3i, R3 and the RiskBlock Alliance, a non-profit initiative of the insurance education and certification body The Institutes, are the de facto blockchain “skunk works” for many major players in ...

Continue Reading

Fortune: How Blockchain Could Help Restore Power in Puerto Rico link

There’s an increasing number of entrepreneurs looking to put their newest product “on the blockchain” — from food delivery to social media to dating apps. One startup is doing something slightly more noble with the ledger technology — helping Puerto Rico recover after nearly eight months of power outages on the island. Hurricane Maria destroyed much of the area’s infrastructure and its electrical grid. Bloomberg profiled an Australia-based company called Power Ledger has hired a grid resiliency and security expert to lead power restoration efforts in Puerto Rico. The startup is using blockchain technology to do this. Read on Fortune

Continue Reading

This is a unique website which will require a more modern browser to work!

Please upgrade today!