Alumni Lecture Series: Chapter 1 (Mayank Mishra)
Catastrophe bonds (CAT) made their dawn in the US in the wake of the shocking hurricane, Andrew, in 1992 which dented properties worth $27.4 billion. Thus, making the insurance diffusion high in the US. The insured value of properties in the US coastline have factually doubled every 10 years.
The fundamental concept of any insurances is that you pay someone a small fee to take an unprecedented risk on your behalf. But there are also reinsurance companies which help insurance companies to restrict the loss so that they can honour all the claims related to a particular risk of an individual or an entity. This is particularly important when the insurance company has exposure to natural disaster claims because this typically results in a larger number of claims coming in together. The third market is Insurance-Linked Security (ILS) which is securitization model for insurances and reinsurances companies.
To enlighten us more in this subject, Mayank Mishra, who is currently working in the investment team of an asset management company, Fermat Capital Management, USA, was invited to give afirst talk as part of the DA-IICT Alumni lecture series on September 13 2020. He currently works in an industry whose primary role is to absorb the economic shock to companies, and governments from natural and man-made disasters that are increasingly making it to the news because of their devastating effects to life and property globally.Further in the talk Mayank Mishra stresses upon building a foundation on multidisciplinary job role which is at the intersection of finance, weather & climate, computer science and statistics. He then further talks about DA-IICT foundation courses in Statistics and Probability, Programming, Data Analytics and Simulations and computer language such as PYTHON, MATLAB and SQL for career progression.
Mayank Mishra is a 2009 batch graduate in ICT from DA-IICT. He did his MS (Business Analytics) from the University of Cincinnati and an MBA from the Columbia Business School. These distinguished degrees to his credit, fuelled by an illustrious career in Finance, with roles at Aon Benfield, Qatar Reinsurance Company Ltd and Gen Re- A subsidiary of the Berkshire Hathaway. He is currently working as a Senior Risk Analyst at Fermat Capital Management where his primary role is estimating risk for financial instruments whose underlying risk is extreme weather events such as earthquakes, hurricanes, wildfires etc.