Ledger Investing, the insurance technology (insurtech) and insurance-linked securities (ILS) focused company, is reportedly set to be used as a vehicle through which to source capacity to support UK motor insurtech Pukka as it hunts for new reinsurance capital sources.
According to the report, from UK market publication Insurance Age, Ledger Investing could enter the UK motor insurance telematic driven space as a capacity source for the first time with this arrangement.
The report states that Pukka Insurance has arranged capacity via the ILS specialist Ledger’s platform.
The motor specialist is now said to be working to arrange the necessary fronting arrangements, to channel Ledger’s ILS backed risk capital through to become one of its reinsurance panel.
As an MGA, Pukka provides telematics based motor insurance via brokers, using quota share reinsurance to support its business growth, as is typical in the motor arena.
One of its quota share providers, Unipol, had recently pulled-back from UK motor business, leaving a gap in its reinsurance arrangements.
Ledger Investing has a track-record working with auto insurance MGA’s in the United States, taking on a range of non-catastrophe P&C risks from commercial through to non-standard auto, as well as certain auto liability risks.
Ledger uses its technology platform to make non-catastrophe and casualty insurance risks more easy to understand, predict and enhances transparency associated with them, to enable capital market investors to allocate their capacity behind them.
Expanding its capacity provision to the UK motor insurance market would be a natural next step for Ledger, as it looks to build out its portfolios of capital market investor backed risk.