A new insurance technology start-up named Stere has been launched to provide a digital ecosystem for insurance programs, targeting capacity provision and digital enablement for MGA’s, insurtech’s and programs, with a desire to help them access ILS fund capacity as well as traditional.
Stere has been launched by Dogan Kaleli, former Head of Program Business North America at Allianz and the founder hopes his new company will be able to accelerate speed to market for those designing insurance programs and in need of access to insurance and reinsurance capacity.
“The launch of Stere equips program owners with a superior selection engine, pairing human intuition with well-designed technology to increase success rates and speed-to-market, while creating growth opportunities for capacity providers,” Kaleli, CEO of Stere explained. ”Stere’s program placement platform, Stere P3, tackles the capacity sourcing challenges I experienced firsthand in my previous roles, and that the hardening market has now intensified.”
Kaleli says that the program business space, which has combined annual premiums for MGA/MGUs and embedded programs of $100 billion and is forecast to reach $800 billion+ by 2030, is plagued with manual processes for capacity placement and inefficient post-placement steps, as well as a lack of digital tools to enable greater efficiency.
Stere P3, which is the first module launched, was designed alongside program experts to increase program success rates by more than 25%, while reducing insurance carrier and reinsurance firm financial and time investment in program scouting by at least 50%, the company claims.
Stere P3 enables MGA/MGUs, insurtechs, and embedded insurance programs to source risk capacity and access digital tools from top-rated participants.
The company is targeting insurance-linked securities (ILS) funds as one type of capacity provider and Stere P3 will enable program managers to access capacity from the insurance, reinsurance, ILS market, as well as captives and brokers, plus access new, relevant opportunities with complete, easier-to-analyse submissions.
“The programs space is undergoing a renaissance, particularly in terms of digital transformation,” commented Tom Gillingham, managing director and leader of MGA and MGU programs for NFP and a client of Stere. “Improving customer experience, launching new products, creating process efficiencies, and using data to enhance underwriting are key areas of focus for managed programs. This has sparked the creation of a digital ecosystem to support MGA/MGUs, insurtechs and program managers, and we’re excited to be working with Stere to move the industry forward.”
Using technology to link the program business space with alternative reinsurance capital is a win-win, by providing a source of origination for ILS funds and access to efficient and diverse capital sources for MGA’s/MGU’s and insurtechs.