REVERSAL RISK SUITE
Buffer Depletion Insurance
Protection against the buffer pool depleting below a defined threshold
Buffer Depletion Insurance protects against the risk that the buffer depletes below a defined threshold, thereby offering protection for Standards against unexpectedly high losses at the buffer level and the associated liability.
Why buy Buffer Depletion Insurance?
Strengthen buffer resilience
Provides a creditworthy backstop if unexpectedly high losses deplete a buffer below an agreed threshold.
Build market confidence
Reinforces trust in the integrity and solvency of the buffer pool.
Improve risk insight
Supports robust risk modelling, data analysis and monitoring of the buffer pool.
How the policy impacts the project?
Financial
Greater resilience against unexpected losses and potential buffer default.
Operational
Additional risk modelling, data analysis and monitoring support, to help with robust risk management of the buffer pool.
Strategic
Increased buyer, seller and investor confidence in the buffer framework.
COMPETITIVE DIFFERENTIATORS
Only insurer selling this policy - Buffer Depletion Insurance is the world’s first buffer insurance policy
KEY USE CASES
Standards seeking to improve the resilience of their buffer pool to outlier losses
Standards seeking to have clear & robust risk management to protect their long-term liability
Standards seeking to improve stakeholder confidence in their non-permanence risk management mechanisms
