ILS Insight

The Origin of Innovation
Tuesday 13 July 2021

ILS Insight

Innovative Guernsey

Mark Helyar

Deputy - Policy & Resources Committee, The States of Guernsey

Mark Helyar is a Guernsey lawyer with a specialist practice in reinsurance, insurance and ILS. He has advised foreign governments in Europe, the Middle East and Asia and their regulatory authorities on the drafting, inception, regulation and use of insurance and reinsurance structures and legislation as well as acting as an expert witness. During his career he and his team have won a number of nominations and international awards for insurance and reinsurance transactions, including the world’s first private listed CAT bond (Solidum) and the first ever Takaful securitisation structured as a Sharia compliant note (Salam III), life deal of the year 2016 (SQ Re Vita II, Trading Risk Awards). He was recently involved in the creation of the first ever humanitarian CAT bond insuring against volcanic eruption risk for the Danish Red Cross (Replexus Re). Mark became a Guernsey politician in 2020 and is the treasury representative on Guernsey’s senior political committee, where he is also responsible for government’s relationship with the financial services regulator.

Technical showcase

Cedric Edmonds

Founder - Replexus

Cedric Edmonds is an Associate of the Chartered Insurance Institute (ACII) and holds a BA (Hons) in accounting and finance. He began his reinsurance career at Catlin Underwriting Agencies in Lloyd’s of London in 1994 and moved to Swiss Re, Zurich and then Allianz Risk Transfer, the alternative (re)insurance company of the Allianz Group. He joined Solidum 2008 setting up Solidum Re (Guernsey) ICC Limited in 2009 doing the ILS market's first ever ‘Cat Bond Lite’ issue in early 2010. In 2012 Cedric was instrumental in the first ever listing of a catastrophe linked note in Guernsey, when he listed the $52.5m Eiger Re transaction and was the first person to settle a securities issue on a blockchain in 2017 and went on the be the first to list a blockchain-settled security on a recognised exchange (TISE) in 2018.

Cedric left Solidum to create Replexus, a group that structures, issues and settles ‘Cat Bond Lite’ securities on a blockchain. Replexus's first transaction was the Dunant Re 2021-1 VE notes issued for the Danish Red Cross. This is the first humanitarian and volcano-only cat bond providing proceeds to the Red Cross in the event of one of the covered volcanoes erupting. With a parametric trigger it provides instant funds for the Red Cross to deploy ahead of the ash-cloud falling to earth in an example of ‘forecast-based financing‘.

Gus Majed

Group CEO & Founder - Paratus Group

Gus Majed is the Group CEO & Founder of Paratus Maritime & Paratus Aviation, offering the world’s first parametric fuel and freight price insurance cover. Established in May 2020, Paratus is based in Guernsey, and licensed & regulated by the GFSC.

Gus has over 24 years’ experience as a proprietary oil trader with physical, derivatives and hedge fund specialism, starting his career in 1996 at Shell Trading & Shipping on the risk-management desk. He then moved to the world’s largest oil trader, Vitol, and in 1999, co-founded together with the present Global CEO of Vitol, the Group’s global oil derivatives trading business in London, Geneva and Singapore. Gus has also worked as a Senior Oil Trader for Hess Energy Trading as well as setting up an oil focused hedge fund, Beca Macro Commodities Fund, in 2011.

The genesis for Paratus came in 2016 when advising a major airline, who held billions of dollars’-worth of jet fuel price exposure. Gus saw at firsthand how non-specialist global consumers were significantly exposed to oil price risk and required a better way to risk-manage their balance-sheets. A trustworthy, simple to understand and innovative product was needed - parametric insurance became the solution.

Gus assembled a world-class team of insurance, oil trading, risk-management and operations experts to setup Paratus, which is now operating across fuels, freight, and several other products launching this year.

Panel session

Cedric Edmonds

Founder - Replexus

Cedric Edmonds is an Associate of the Chartered Insurance Institute (ACII) and holds a BA (Hons) in accounting and finance. He began his reinsurance career at Catlin Underwriting Agencies in Lloyd’s of London in 1994 and moved to Swiss Re, Zurich and then Allianz Risk Transfer, the alternative (re)insurance company of the Allianz Group. He joined Solidum 2008 setting up Solidum Re (Guernsey) ICC Limited in 2009 doing the ILS market's first ever ‘Cat Bond Lite’ issue in early 2010. In 2012 Cedric was instrumental in the first ever listing of a catastrophe linked note in Guernsey, when he listed the $52.5m Eiger Re transaction and was the first person to settle a securities issue on a blockchain in 2017 and went on the be the first to list a blockchain-settled security on a recognised exchange (TISE) in 2018.

Cedric left Solidum to create Replexus, a group that structures, issues and settles ‘Cat Bond Lite’ securities on a blockchain. Replexus's first transaction was the Dunant Re 2021-1 VE notes issued for the Danish Red Cross. This is the first humanitarian and volcano-only cat bond providing proceeds to the Red Cross in the event of one of the covered volcanoes erupting. With a parametric trigger it provides instant funds for the Red Cross to deploy ahead of the ash-cloud falling to earth in an example of ‘forecast-based financing‘.

Adele Gale

Director & Group Head of ILS - Robus Group

Adele joined Robus in February 2020 and manages a portfolio of clients alongside consulting on the setup of new vehicles.

Adele is a Fellow of the Institute of Chartered Accountants with more than 10 years’ experience in insurance management. She has sat as a director on a number of captives providing property, cyber, employee benefits and employers liability, PI and D&O cover to their parent entities.

During 2020 Adele worked with GIIA to develop the first domicile ESG Framework for insurers and has lead ESG initiatives at Robus transforming the business to be more sustainable.

Adele worked at Aon for eight years as the client service team leader and a director of Aon’s sponsored PCC and ICC insurance entities, several captives and client owned ICCs, PCCs and limited liability companies. She has worked with a wide variety of clients to structure insurance transactions which meet their needs and comply with Guernsey’s regulatory and legal requirements.

As the Chief Risk Officer of Guernsey’s first rated catastrophe reinsurer, Adele gained experience presenting to AM Best at rating meetings and was the architect of the enterprise risk management framework. She has worked with several professionals including rating advisory, governance specialists, modellers, capital actuaries and compliance teams as well as various client’s and investor’s operational, legal and due diligence teams.

Prior to joining Robus, Adele worked for Artex on a fixed term contract basis where she took part in the Artex team’s business trips and assisted with new business enquiries.

Gus Majed

Group CEO & Founder - Paratus Group

Gus Majed is the Group CEO & Founder of Paratus Maritime & Paratus Aviation, offering the world’s first parametric fuel and freight price insurance cover. Established in May 2020, Paratus is based in Guernsey, and licensed & regulated by the GFSC.

Gus has over 24 years’ experience as a proprietary oil trader with physical, derivatives and hedge fund specialism, starting his career in 1996 at Shell Trading & Shipping on the risk-management desk. He then moved to the world’s largest oil trader, Vitol, and in 1999, co-founded together with the present Global CEO of Vitol, the Group’s global oil derivatives trading business in London, Geneva and Singapore. Gus has also worked as a Senior Oil Trader for Hess Energy Trading as well as setting up an oil focused hedge fund, Beca Macro Commodities Fund, in 2011.

The genesis for Paratus came in 2016 when advising a major airline, who held billions of dollars’-worth of jet fuel price exposure. Gus saw at firsthand how non-specialist global consumers were significantly exposed to oil price risk and required a better way to risk-manage their balance-sheets. A trustworthy, simple to understand and innovative product was needed - parametric insurance became the solution.

Gus assembled a world-class team of insurance, oil trading, risk-management and operations experts to setup Paratus, which is now operating across fuels, freight, and several other products launching this year.