Kettle Re, or Our Kettle, a deep-learning and artificial intelligence (AI) focused reinsurtech start-up, has registered a company in Bermuda and received an Innovative Agent license for it.
We first wrote about Kettle Re last October, the company came out of stealth and explained its mission to become a reinsurance provider that uses machine learning technology to better protect people from the growing risks associated with climate change, such as California’s wildfires.
Operating as a Bermuda-based MGA, Kettle Re aims to use its proprietary software and models to make risks such as wildfires more understandable, so as to more accurately price and underwrite them.
Ultimately, the goal is to attract reinsurance capital to its programs and underwriting prowess, which it believes will be best-in-class as a result of its technology advantage.
Bermuda based subsidiary Kettle Limited has been registered and licenses as an Innovative Intermediary – Insurance Agent (IA), which was a new classification established by the Bermuda Monetary Authority (BMA) to encourage and foster innovative approaches to insurance and reinsurance intermediation, with the IA designation most suited to the managing general agent (MGA) business model Kettle Re is following.
Kettle has also entered Bermuda’s regulatory sandbox for insurtech’s, which provide it with an environment to test and build-out its platform with a small number of clients under regulated market conditions.
International law firm Walkers acted as Bermuda counsel on the formation and registration of Kettle Limited in Bermuda and its recent granting of a Bermuda Innovative Agent Licence.
“This insurtech sandbox licence represents an innovative and exciting new source of reinsurance business for Bermuda reinsurers supporting Kettle Limited, which utilises Our Kettle, Inc’s artificial intelligence and machine learning technology to analyse data from 47 different sources, including NASA satellites, weather satellites and laser-based Lidar mapping sensors in order to predict more accurately the likelihood of California wildfires in any given square mile,” Walkers explained.
Establishing its business in Bermuda and gaining this innovative agent license is the next step to market for Kettle, as it continues to develop its models and risk analytical software, with its initial focus on wildfire exposures.
The company aims to provide packages of risk to risk capital providers, reinsurance or ILS funds, that have been through its deep analytical processes to minimise uncertainty and provide what the risk bearers want.
Kettle Re aims to be agnostic to capital forms, bringing capacity from ILS funds or investors into its underwriting programs, alongside traditional reinsurance capital, as they scale.