Nephila leads reinsurance facility for Boost insurtech platform

by Artemis on May 10, 2018

Nephila Capital, the largest ILS investment fund manager of catastrophe and weather insurance-linked assets, is to lead a dedicated reinsurance facility for InsurTech development platform company Boost Insurance, with capacity also provided by Markel and RenRe.

Boost Insurance launched last year, with backing from ILS fund manager Nephila Capital, its fronting partner State National and some top VC’s, with a mission to help InsurTech start-ups through the often painful process of getting started in the risk business.

Capacity provision is just one of the benefits that start-ups targeting the risk and underwriting sector can get through working with Boost, along with other tools, mechanisms and platforms where insurance and reinsurance business can be transacted in real volume.

This helps to take the pain out of the start-up process and now with the addition of a dedicated reinsurance facility, Boost can also help InsurTech start-ups by guaranteeing them access to the efficient risk capital needed to propel their growth.

In an announcement, Boost said that it has secured a dedicated reinsurance facility, which will be the capacity that powers its B2B insurtech development platform.

Leading the facility is Nephila Capital, with participation from Markel Digital, the insurtech group of Markel Corporation, and Bermudian reinsurer RenaissanceRe Holdings Ltd.

Boost said that, serving as general agent of ‘A’-rated fronting carrier State National Companies, Inc. (one of its backers), will manage a program that can support multiple insurtech startups that seek to enter the property and casualty (P&C) insurance industry.

Additionally, Boost said that it’s capacity facility will be able to support all lines of business, both personal and commercial.

“This is a landmark day for Boost because it makes us a truly one-stop shop for insurtech startups looking to bring their ideas from concept to reality,” commented Boost’s CEO and founder Alex Maffeo.

“Limited access to licensed insurance paper and risk capacity is by far the number one barrier to entry for insurtech startups, and a huge impediment to innovation in this industry. We spent the last year developing relationships with a group of the most forward-thinking (re)insurance capital providers in the world. These partners are willing to put their money where their mouth is to help insurtech startups succeed and we couldn’t be happier to receive their trust and support,” he continued.

Barney Schauble, Managing Partner at Nephila Capital, added, “Boost offers Nephila and the rest of the reinsurance facility members exposure to the best insurtech startups and new insurance products with the confidence that underwriting and compliance is being closely monitored by an experienced team.”

Boost said that it has the authority to appoint insurtech start-ups as distribution partners, giving them the ability and functionality to manage their own insurance programs. Boost is now licensed across 50 U.S. states as both a standard P&C agency and E&S broker, which is important reach for insurtech’s targeting the U.S. market.

The company also said that its services will be offered digitally through an API-driven technology platform, which is ideal for start-ups looking to gain access to insurance functionality and reinsurance capacity through technology driven services.

Luke Ledbetter, EVP & CUO of Program Services at State National, said, “For startups, technology reigns supreme, time is the enemy, the stakes are high, and concepts are unproven – until they’re not. Boost is in position to accelerate the proof of concept for startups and usher in the future of insurance.”

Boost Insurance expects to announce its first insurtech start-up partners in the coming weeks. The firm noted that access to re/insurance capital (distinct from venture capital) can be one of the biggest roadblocks to an insurtech start-up getting its product to market.

By providing access to efficient reinsurance capacity, through tools and services designed with start-ups in mind, Boost hopes to remove that roadblock, while making the path to market smoother for insurtech’s.

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