A technology start-up is targeting the insurance-linked securities (ILS) market as potential users for its newly developed catastrophe reinsurance underwriting and pricing platform.
The software solution called Foundation has been developed by Bermudian reinsurance technology specialists Treefrog alongside Foundation Platform Technologies and the pair believe the web-based underwriting, pricing and portfolio management application can help both traditional reinsurance and ILS businesses, “dramatically speed up the pricing of even the most complex deals.”
The software will be available to early adopters in February 2019 and the companies are seeking beta testers who can benefit from discounts and also help to steer the direction of the product with their feedback.
Being web-based the platform does not require expensive hardware, specific development or huge investments and updates to the core software will flow through to benefit every user.
The software will also allow complex and multi-layered reinsurance transactions to be viewed, analysed and priced, important for potential users in the ILS market.
Treefrog President Dmitry Mnushkin commented on the launch, “This product is going to turn a lot of heads with its polished screens, pricing speed and ease of use. It is ideal for reinsurance and ILS companies that must price and manage property catastrophe reinsurance risk.”
Mnushkin said the speed of the software means that reinsurance and ILS transactions can be priced rapidly, pricing “even the most complex deals in well under 10 seconds.”
He believes this could save users millions of dollars compared to building and maintaining their own internal software systems for underwriting and pricing deals.
“Even though the software is off-the-shelf, the calculations behind the scene are entirely customizable. That means your Intellectual Property, actuarial insight and underwriting acumen can be quickly encoded in your copy of the software, and no-one else has access to it,” Mnushkin explained.
This is an important point, as it means reinsurance firms and ILS funds that use the software can maintain their own views of risk and pricing within the system, through these customised calculations.
Michael Lyons, CEO of Weston Insurance Holdings, the Florida-based primary insurer of catastrophe exposed property and an advisor to the development of Foundation, added, “When I first saw how quickly this software could price a deal, I knew it was going to change the industry.”
Foundation Platform Technologies COO, Kelly Dutnall, also said, “We wanted to make sure the onboarding experience was simple and efficient. Our Goal: within 10 days, have a new client up and pricing their deals.” Foundation will dramatically lower the barrier to entry for companies wishing to apply technical underwriting discipline to writing catastrophe risks.”
Bermudian technology consultancy Fireminds is set to work as an integration partner for the Foundation Platform.
CEO of Fireminds CEO Michael Branco said, “Fireminds continues to provide enterprise services in data centers, cloud, managed services and software development for re-insurance and insurtech customers in Bermuda and Cayman. We’ve enjoyed a long-standing relationship with our solution partners and are excited to work with them to launch Foundation and deliver better toolsets to our valued customers.”
Any companies interested in learning more or taking part in the Beta Test Programme should contact [email protected].