Russell Group unveils connected risk business resilience policy

Industry data provider Russell Group’s Connected Risk working group has announced the successful organisation of a five year business resilience insurance policy.

Three of the market’s major reinsurers have pledged support to a captive firm set up by telecoms giant Vodafone that will provide it with a connected risk outcome-based solution.

This has taken the form of a complex structured policy including elements of risk financing against a range of major events that would affect Vodafone’s network, with minimal exclusions included in the policy wording.

GR caught up with Russell Group during the Rendez-Vous de Septembre (RVS 2024) in Monte Carlo this week.

Russell Group noted that it believed there would be a “major industry shift to [this form] of innovative risk transfer” once the exposures of such a policy became better understood, since there is currently no loss history for this type of policy to inform underwriting.

The company formed its corporate working group in 2018 to create a connected risk proposition for major corporate clients, with half of the 33 firms currently involved representing FTSE 100 companies across various industries.

Russell Group managing director Suki Basi (pictured) explained: “Innovation has been a buzzword in the industry for years, but the real mark of being a pioneer is to have the transforming skill to enable cycles of innovation to be realised.

“In response to feedback from our corporate working group, we are now building a new market for connected risk outcome-based solutions.

“We believe this is the future of global corporate (re)insurance, which is why our mission at this year’s RVS is to build capacity for connected risk.”