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Tech firms likely to drive new classes of risks to capital markets

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Insurtech firms and technology developments could drive the placement of new classes of risks directly with alternative capital and insurance-linked securities' investors, further disrupting the insurance and reinsurance industry, Artemis.bm reports. Dinos Iordanou, chief executive of Bermuda-based insurer Arch Capital Group Ltd., said that as risks become more “commoditizable,” the capital markets combined with financial technology and insurtech could result in these classes of business being channeled directly to investors.

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