Latest Insurance Open Protocol Template published
The IOP forms part of the Open Protocol (“OP”) risk aggregation template which was first launched in 2011 to standardise the collection and representation of risk information of investment funds for investors. Open Protocol is currently used by funds representing over US$2tn in assets under management.
IOP provides a risk reporting template for funds that have significant exposure to property catastrophe insurance risk. It has been developed to cater for the unique characteristics of property catastrophe exposure – including risk types, sources of leverage, stress test results, and side pocketing.
Michael Hamer, Partner and Senior Investment Analyst at Albourne Partners said: “IOP’s risk reporting has been revised to capture more aspects of the risk of property catastrophe insurance funds. It will improve the ability of investors to compare information between funds and to create a portfolio view of multiple funds. It is worth noting that IOP has materially benefitted from the input of managers and others in the SBAI ILS Working Group.”
François Delattre, Head of Analytics at Tangency Capital said: “(Insurance) Open Protocol helps streamline the reporting process and enable better transparency. This ultimately fosters resilience and a more secure operational environment that strengthens confidence for our investors.”
Thomas Deinet, Executive Director at the SBAI said: “Better risk disclosure is a priority for investors and regulators alike. As a standardised template, (Insurance) Open Protocol ensures consistency, comparability, and clarity across funds to enable transparency and facilitate effective risk management.”
The IOP and OP template remain combined to better harmonise data provided at manager level as well as ease the burden of reporting. Changes to the IOP template have been made in consultation with the SBAI’s ILS Working Group, composed of leading ILS fund managers and institutional investors. Other areas of work coming from the SBAI ILS Working Group has included guidance on valuation and side pocketing practices in insurance-linked funds and are available in the SBAI Toolbox.
Albourne is an independently owned, non-discretionary and transparent global investment consultant, which has been providing advice for over 30 years. As a member of the SBAI ILS Working Group, Albourne has played a leading role in providing a practitioner’s lens to the template. For more information on Albourne, please visit www.albourne.com.
The SBAI is an active alliance of over 150 alternative asset managers and over 100 institutional investors dedicated to advancing responsible practice, partnership, and knowledge. The SBAI advocates for an effective alternative investment ecosystem through robust standards and the exchange of ideas. For more information on the SBAI or to join the SBAI community, please contact [email protected] or visit the website www.sbai.org.
