Jireh launched by Sal Tucci, with ILS risk transformation, fronting & advisory focus

Well-known Bermuda-based insurance-linked securities (ILS) market executive Sal Tucci has launched a new venture, Jireh Holdings Ltd., with the company set to bring ILS risk transformation, fronting and advisory services to clients, while a broader insurance management offering is also anticipated in future.

Sal Tucci most recently worked as the Chief Operating Officer (COO) at Aspen Capital Markets, the third-party reinsurance capital and ILS investment arm of Bermuda based re/insurer Aspen Holdings.

In his career, Tucci has also worked as a Portfolio Manager at Cartesian Re (now NB Re, the ILS division of Neuberger Berman), as a Managing Director for Bermuda based wholesale property insurance broker Napco, and as co-founder of Reinsurex, a technology-enabled reinsurance broker focused on lowering the frictional cost of trading index based catastrophe products.

With Jireh Holdings Ltd., Tucci is going back to his roots a little, aiming to help industry participants achieve better outcomes through industry expertise and technology, while focusing on core areas of sector service provision that he sees an opportunity to deliver something more cost-effective, or efficient to.

While Jireh will provide services to both the ILS and reinsurance market, Tucci is beginning with an insurance-linked securities (ILS) focus.

With a number of market segments identified where Jireh believes that expertise and a technology-focused approach can provide superior middle and back-office solutions, risk transformation services will be a key focus.

To that end, Jireh Re (SAC) Ltd. has been established as a Bermuda based, licensed special purpose insurer (SPI) and segregated accounts company.

Investors will be able to utilise Jireh Re (SAC) and its cells as a vehicle in which to collateralize their investments into reinsurance products.

In addition, Jireh Re maintains active relationships with rated fronting carrier partners, through which ILS clients and investors will be able to gain access to structural leverage.

Tucci’s Jireh Holdings has also established an advisory arm, Jireh Risk Advisors Ltd.

Jireh Risk Advisors will work with ILS and reinsurance sector partners to deliver a range of advisory services, including reinsurance structuring, collateral solutions, wordings advisory and distribution advisory, leveraging a network of broker and market contacts.

Jireh aims to provide customised solutions to clients, as well as provide a single home where they can leverage its ILS market infrastructure and advisory to enter into transactions and investments.

Jireh’s ambitions do not stop there and the company says, believing market participants have become complacent with “business as usual”, it wants to challenge the markets current service standards, while elevating market expectations on service provision as well.

On the radar, as additional service offerings for Jireh, are a full-suite of insurance management services to the catastrophe bond and broader ILS markets.

Technology will be at the core of Jireh’s development and Artemis spoke with Tucci to find out a little more about his plans for the company.

He explained, “Historical attempts of digitizing the industry, which largely focused on either compressing the value chain or redefining it, have historically fallen flat. The problem is not with the technology, but rather in the application of the technology. Jireh incorporates technology to improve its own service capabilities and standards. In doing so, Jireh can focus on adding more value to its partners at a price commensurate with the value derived.

“As the ILS and reinsurance markets continues to grow and evolve, service providers must also be able to keep pace with evolving demands. Jireh is leading the charge in being the next generation of service provider to the ILS and reinsurance marketplace. ‘Business as usual’ is no longer an option.”

ILS market participants have been responding well to increased choice among service providers and as ILS-techniques get more deeply embedded into insurance and reinsurance markets, Tucci sees an opportunity to offer what he believes is a different and value-added approach.

“Investors and market participants have responded very positively to increased choice amongst ILS service providers. There has been a clarion call for consistent and elevated service standards within the space. Jireh is answering that call,” Tucci said.

Adding that, “We are actively seeking to expand the availability and capability of rated fronting capacity to the ILS market. We believe that as the ILS market grows, rated carriers can contribute greatly to its future. We are presently exploring creative options to open up this market to more participants.”

As a company, Tucci has founded Jireh to be attractive to employees as well, wanting to align the remuneration structure of the entire Jireh team directly to the success of the business.

Part of this is to ensure the high-turnover that some companies in the re/insurance and ILS space have seen is not a feature at Jireh.

But it also speaks to Tucci’s entrepreneurial ambitions, that he is looking to create a service provider with what he sees as an elevated value-proposition for the ILS market.

“The traditional norms around what service providers ‘should look like’ needs to be challenged,” Tucci told Artemis.

” Our motto is ‘ReImagine Everything’…we don’t accept the status quo and very much strive to add value beyond that which is typically envisioned by companies historically in the space.”