Blockchain and Smart Contract Catastrophe Bond Marketspace Network to Launch in 2020
An innovative new patent pending marketspace network to launch in 2020 to enable the growing demand for catastrophe bonds especially from ESG, SRI, and impact investors. As climate change continues to have dramatic social, economic, and business impacts that governments and underwriters must contend with it demands new models of risk transfer, underwriting, and pricing of risk to meet the growing need.
CMG, based in New Orleans, and whose team has experience with over 30 hurricanes, natural disasters, municipality, state, and federal public financing, real estate, and capital and debt markets, has solved for many of the problems associated with the secondary risk, reinsurance, P&C, and catastrophe risk management financial products and markets. By using blockchain distributed ledgers along with newly designed proprietary solutions the new marketspace (virtual) will have real time price discovery of the underlying assets covered by risk instruments that, to date, have not been available to the property and casualty (P&C) industry.
As climate change grows and impacts many areas around the globe, new financial vehicles and instruments are needed to address the cost to municipalities, industry, and citizens and offer an accurate and efficient mitigation of their risks. The challenge has been pricing that underlying risk as the appraised value is abstract, fragmented, unstructured, and often outdated and unreliable. David Crais, CEO of CMG said, "With our understanding and experience in global public and private financial markets, insurance underwriting, real estate finance, governance and public economic development, and a product design and development experience with blockchain, algorithmic trading, API's, smart contracts, and asset valuation, we have solved for all of the primary challenges that have hampered other proposed solutions to this marketplace. The time is right, with the technology and the growing effects of climate change on society, for this solution."
The problem of catastrophe bond valuation and property risk assessment has been addressed as a continuing challenge. It was covered recently in the book, “The Geography of Risk: Epic Storms, Rising Seas, and the Cost of America’s Coasts” (Gilbert M. Gaul, copyright 2019, published by Sarah Crichton Books), and by New Orleans native Michael Lewis in the New York Times in 2007 with regard to Hurricane Katrina ("In Nature's Casino," The New York Times Sunday Magazine, August 26, 2007) and to the most recent issues with the California forest fires and PG&E Power, valuing the underlying assets of regions effected by natural disasters is inaccurate at best and stymies the creation of insurance products to cover these events which are increasing in number and severity due to climate change.
Crais said, "After having gone through Katrina and seen first hand the challenges of flood insurance, wind coverage, business interruption insurance, and now with forest fires in California, 'King Tides' in Miami along with the porous limestone of south Florida, rising sea levels globally, and other climate related risks, it was obvious to me 15 years ago we needed more solutions to this problem. Now, with blockchain contracting and other digital tools utilizing FinTech, low or zero latency fiber and 5G, and AI applications, the time has come where we can finally offer solutions."
David Crais, who served under two Louisina governors as Chairman of the Imports and Exports Trust Authority, a pubic finance bond agency, "We also hold a unique view from our location in New Orleans in solving for this problem. We saw first hand the issues related to disaster recovery and insurance settlement as result of Hurricane Katrina. We have many associates with disaster and environmental risk related firms with experience from Hurricane Andrew and Katrina, Superstorm Sandy, Midwest floods, Haiti earthquake, and California forest fires. We are also lucky to have two of the FinTech leaders in global electronic marketspaces, Lucid (formerly Federated Sample), an online marketplace for market sample data, and Receivables Exchange, an online marketspace for trading credit risk and receivables. The deep bench of talent recruited by Nic Perkin of Receivables Exchange and Patrick Comer of Lucid into New Orleans gives us many professionals who understand the design and development of meta-scale electronic marketplaces. We also have the talent in insurance claims management and underwriting assembled by John Houghtaling of Gauthier Murphy Law Firm, one of the leading independent claims adjuster firms in the nation."
CMG Crais Management Group LLC is a New Orleans-based product management, strategic design and planning, research and development, BTOE, and marketing and commercialization firm with expertise in healthcare, biomedical engineering, real estate, economic development, digital and ICT media and content, FinTech, financial and real estate markets, and digital technologies. Founded in 2005 just prior to Hurricane Katrina, it has been instrumental in the development of over 100 new products, companies, programs, and services creating over $1 billion in value for the firms clients.
David Crais, founder and CEO of CMG Crais Management Group LLC, is a New Orleans native with experience in disaster recovery from his time serving after Hurricane Katrina. He has a background in product management and business development with over 30 years in US and international markets and industries. He is a graduate of Loyola University in New Orleans in History of Science, Technology, and Society. From 1992-1998 he was chairman of the Louisiana Imports & Exports Trust Authority, a bond-issuing agency to which he was appointed by the governor. He was a contractor to the Resolution Trust Corporation and+ has held licenses in real estate, insurance, securities, and finance, certifications in product management, new product development, data science, and other technical areas. He has led classes for the National Association of Certified Valuation Analysts (NACVA), Licensing Executives International, and has served as a director on the Committee for a Better New Orleans, City-Works, Loyola University Board, and on the Federal Reserve Board of Atlanta Real Estate Committee. He is a member of the Urban Land Institute, Association for Corporate Growth, and other professional organizations.