Insurtech, Insurance Technology in reinsurance and insurance-linked securities (ILS)

Insurance technology, now known more widely as Insurtech, has the potential to bring significant efficiency & disruption to reinsurance, ILS & risk transfer markets.

Insurtech a hot trend with everyone from traditional reinsurance incumbents, as they seek to improve efficiency and stay ahead of the game, to brokers who are seeking to avoid disintermediation, to insurance-linked securities (ILS) players who see it as a way to enhance the efficiency of their capital even further.

The potential for Insurtech and Fintech initiatives to bring efficient capital, such as ILS capital and alternative reinsurance capital from third-party investors, more directly into contact with risk is huge. The opportunities to use technology to shorten and optimise the chain from original risk, to insurance, to reinsurance, to retrocession (or final capital source), will create winners and losers in the market, making this a trend to watch closely.

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Arch acquiring tech & third-party capital focused MGU Ventus

Arch Insurance North America, a division of insurance and reinsurance specialist Arch Capital Group, has announced that it will acquire the technology and third-party capital focused managing general underwriter Ventus Risk Management.Regular readers will be familiar with Ventus Risk Management, a company focused on sourcing and underwriting property catastrophe and read the full article →

Swiss Re CorSo launches digital parametric risk transfer platform

Swiss Re Corporate Solutions' Innovative Risk Solutions team, a division of reinsurance giant Swiss Re, has launched a digital parametric natural catastrophe platform in the U.S. for the small and medium-sized enterprise (SME) market, called Parametric Online Platform ("POP") STORM.Parametric risk transfer mechanisms are a common feature of insurance and read the full article →

Hudson Structured hires Jeff Sangster, names Bardon as Partner

Hudson Structured Capital Management Ltd., the insurance-linked securities (ILS), reinsurance and transportation focused investment manager, has announced a senior hire, with former Validus executive Jeff Sangster joining the firm as Partner, CFO and Head of Strategy.Hudson Structured, doing its insurance and reinsurance investment business as HSCM Bermuda (HSCM), continues to read the full article →

B3i’s first application supports retro as well as XoL reinsurance

The awaited launch of B3i's catastrophe excess-of-loss (XOL) reinsurance placement system built on distributed ledger technology came today and the company highlighted it can be used for retrocession as well as treaty reinsurance.As we explained earlier this month, the insurance and reinsurance industry backed initiative that became a company, B3i, read the full article →

Alternative capital can “bypass” the traditional value chain: Aon

For some year's now we've been saying that insurance-linked securities (ILS) capacity and alternative reinsurance capital is destined to get closer to risk, as structures and technologies advance to allow it to break free from the strictures of the traditional market chain.So, it's encouraging to hear that insurance and reinsurance read the full article →

Beazley sees tech + capital efficiency in smart tracker, but brokers hold it back

Beazley continues to try and drive down the cost of re/insurance capital using its so-called 'smart tracker' special purpose arrangement (SPA) syndicate 5623, with digitalisation a goal to add further efficiency in the future.But at the same time the specialist insurance and reinsurance firm today questioned brokers willingness to recognise read the full article →

B3i say catastrophe XOL reinsurance system to launch this month

B3i, the insurance and reinsurance industry initiative that aims to create standardised systems for transacting in reinsurance using a distributed ledger, says that its catastrophe excess-of-loss (XOL) reinsurance placement system is finally ready to be released.B3i launched as a blockchain focused consortium of industry insider companies, aiming to create a read the full article →

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 read the full article →

Oxfam, Aon & Etherisc automate parametric weather insurance on a blockchain

A collaboration between Oxfam in Sri Lanka, insurance and reinsurance broker Aon and insurtech blockchain solutions provider Etherisc has delivered a parametric weather insurance product that will make automated payouts to smallholder farmers.The trio, alongside local insurer Sanasa, have launched and begun enrolling farmers into a blockchain-based platform that will read the full article →

Insurance Acquisition Corp. sees potential combinations across the insurance spectrum

Following its successful capital raise, Insurance Acquisition Corp. (NASDAQ: INSUU) is looking to find a model which is angled towards the future and sees interesting possibilities in various types of risk transfer entities, according to John Butler and Amanda Abrams.Insurance Acquisition Corp. is a Cohen & Company, LLC backed insurance, read the full article →