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China’s Belt and Road Initiative, the economic project which aims to recreate the ancient Silk Road that linked Europe to Asia, needs protecting. ILS could provide the perfect solution, as Kirill K. Savrassov, chief executive of Phoenix CRetro Reinsurance Company, tells Intelligent ILS.
In September a 5.8 magnitude earthquake shook Istanbul, triggering the evacuation of schools and public buildings and damaging buildings. The same week, a 5.8 magnitude event killed 38 people and caused massive damage to infrastructure and roads in north-eastern Pakistan.
For Turkey it represented a stark reminder of how bad these events can be. In 1999, a 7.4 magnitude earthquake in the western part of the country killed more than 17,000 people.
For Kirill Savrassov, chief executive of Bermuda-based Phoenix CRetro, such events serve as a reminder of the potentially important role that insurance-linked securities (ILS) based on parametric triggers could play in the region to help cover some of the growing risks in Eastern Europe and Western areas of Asia.
Kyrill Savrassov, bonds, earthquake, Asia, Europe, Silk Road, infrastructure, protection gap