Hudson Structured leads investment round for insurtech RiskGenius

Hudson Structured Capital Management Ltd. (doing its insurance investment business as HSCM Bermuda), the insurance-linked securities (ILS), reinsurance and transportation focused investment manager, led a Series B funding round for insurtech Risk Genius.

RiskGenius provides software-based natural language processing tools that help to improve the quality and accuracy of insurance policies.

As well as achieving the new Series B funding, led by Hudson Structured, RiskGenius has also signed expanded partnerships with major global insurance carriers, Everest Insurance, FM Global and Liberty Mutual.

The financing round, which was led by Hudson Structured and RiskGenius said originated from a customer referral, also included participation from existing backers as well as new investors, Hearst Ventures and FM Global.

“eIQTM – the dedicated Everest Insurance® innovation team, is among the most forward- thinking innovators in the industry. We appreciate their referral to HSCM Bermuda, as well as their continued collaboration in testing and enhancing our software,” commented RiskGenius CEO Chris Cheatham. “FM Global also inquired about investment opportunities after testing our software. Just like our previous round with QBE Insurance, our growth and investment opportunities are being created by our insurance customers.”

“We are excited to partner with RiskGenius and help the company deliver on its value proposition of improving coverage accuracy and increasing underwriting efficiency for insurance clients,” said HSCM Bermuda Vice President Andrew Sagon. “We believe the company is uniquely positioned to drive standardization of insurance policy language across the industry.”

The funding is expected to allow RiskGenius to continue improving its software platform for commercial insurance carriers and brokers, as well as funding marketing and sales initiatives to grow its client base.

Hudson Structured, the asset manager established by ex-Goldman Sachs structured finance head Michael Millette, invests in insurtech as one of the novel ways it accesses insurance-linked returns for its investors from across the range of market access points.

Insurtech investments are seen as able to deliver on insurance and reinsurance distribution innovation linked returns for the firm’s investors.

Hudson Structured has continued to attract new investor capital in 2019, reaching $1.7 billion of reinsurance and ILS in committed capital and assets under management.