Hudson Structured invests in home & auto insurtech Goji

by Artemis on November 16, 2017

Hudson Structured Capital Management Ltd., the insurance-linked securities (ILS), reinsurance and transportation investment manager, has invested in insurance technology start-up Goji, a data-driven home and automobile insurance distribution platform.

It’s an interesting insurtech investment by Hudson Structured, the asset manager established by ex-Goldman Sachs structured finance head Michael Millette, as the firm looks for novel ways to access insurance-linked returns and to access sources of risk from insurance products to transfer into the capital markets.

Hudson Structured Capital Management Ltd., doing business as HSCM Bermuda, has led a $15 million investment round in Goji, as the insurtech company looks to finance ongoing growth and expansion of its direct to consumer home and auto insurance platform.

Goji operates a data-driven platform helping agents to match customer needs with the correct coverage through Goji’s integrated network of over one dozen insurance carriers. The system offers customer personalised, real-time, valued-based insurance quotes designed to fit their coverage requirements. The insurtech startup is a licensed insurance agent in 41 states.

Vikas Singhal, a partner at HSCM Bermuda, commented on the company, “Goji is a leader in the technological transformation of the distribution of insurance. We believe they have built a platform that represents the right next step in the evolution of how insurance will be sold – a hybrid online and offline model. We believe Goji’s unique strategy will show substantial growth that extends beyond just the markets they currently operate in.”
Goji Executive Chairman, Matt Coffin, said that partnering with HSCM Bermuda provides them with a backer that has, “A demonstrated sophisticated knowledge of insurance along with strong access to the insurance and reinsurance markets. We’ve already identified several opportunities to continue to expand Goji’s business and are looking forward to exploring additional ways to strategically partner with HSCM Bermuda’s business and leverage their resources for our mutual benefit.”

“HSCM Bermuda has a long-standing working relationship with members of Goji’s management team and Board,” Michael Millette, Managing Partner of HSCM Bermuda commented. “We’re excited about how our partners will help take Goji to the next level.”

Hudson Structured can provide Goji with deep insights into the future of the insurance to reinsurance value-chain, as well as helping to ensure the company has access to reinsurance risk transfer as it scales.

Taking an inside position on insurtech startups that have the potential to experience rapid growth, through a venture investment such as this, means that Hudson Structured can position itself as an influential voice in Goji’s development and a key reinsurance partner for the future.

That’s not to mention the potential for venture investment-like returns from backing a fast-growing insurtech start-up in this way.

It’s important for technology based insurance start-ups to have access to the most efficient sources of risk capital, so it’s expected the ILS market will increasingly look to invest in and back insurtech’s with their third-party sourced reinsurance investment capital.

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