Demex forms advisory board to boost growth amid rising SCS losses

Demex forms advisory board to boost growth amid rising SCS losses | Insurance Business Asia

Insurance News

Demex forms advisory board to boost growth amid rising SCS losses

Trio will guide reinsurance solutions as threats challenge insurers globally

Insurance News

By
Kenneth Araullo

Demex has announced the formation of a new advisory board composed of experienced insurance executives John DeMartini, Alastair Speare-Cole, and Matthias Weber.

The advisory board will provide strategic guidance to help support Demex’s continued growth after the company’s recent $10.25 million capital raise.

This move comes as insured losses from severe convective storms (SCS) in the first half of 2024 have accounted for most global catastrophe losses. The United States has seen a significant rise in insurance payouts related to these events, creating new challenges for insurers and policyholders.

The Demex Group noted that the increase in losses is compounded by limited reinsurance availability for such events.

“These three industry professionals know that severe convective storms represent the biggest weather-related challenge to the property insurance industry,” said Bill Clark, CEO of Demex. Clark also pointed out that in 2023, several US insurers experienced ratings downgrades, and four companies became insolvent due to financial losses tied to SCS.

The new advisory board aims to address these challenges by focusing on Demex’s parametric reinsurance solutions, which are designed to shield insurance carriers from the accumulation of secondary peril property losses.

These solutions also offer reinsurers a profitable new revenue stream in a market increasingly affected by climate-related risks.

Demex’s new advisory board

John DeMartini (pictured above, left): Retired in 2023 as managing director of Guy Carpenter after 24 years with the company. DeMartini was key in identifying the secondary perils reinsurance market, which Demex now serves. He is on the boards of Farmers Mutual of Nebraska and Harford Mutual Insurance Group.

Alastair Speare-Cole (pictured above, middle): Previously a member of the Aon Benfield executive committee and chairman of Aon Benfield Securities, Speare-Cole was CEO of JLT Re and chief underwriting officer at Qatar Reinsurance Company. He has served as a board director for multiple companies, including Transverse Insurance Group, Eaton Gate MGU, Fusion Specialty Ltd, and Bridgewater Specialty Insurance.

Matthias Weber (pictured above, right): Spent 25 years at Swiss Re, where he served as group chief underwriting officer and a member of the executive committee. He has advised and served on the boards of early-stage companies such as COVU, Glow, Next Insurance, CyberCube, kWh Analytics, and Ahoy! Insurance. He is also a partner at Mighty Capital and teaches at Stanford University.

Clark also addressed the rising number of insurance carriers being downgraded by ratings agencies due to climate-related issues, noting that the advisory board’s expertise would help Demex in creating viable solutions to prevent further industry instability.

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