Vesttoo, a technology firm that uses proprietary artificial intelligence and machine learning solutions with the goal of helping companies assess and transfer risks to the capital markets, has taken an investment from a fund focused on the longevity economy.
Vesttoo aims to help risk bearers better forecast and price long-tail exposures, including longevity risk, excess mortality risk, lapse, as well as Value-in-Force (VIF) monetization and also what it terms excess mortality Industry Loss Warranties (ILW), then transfer those risks to the capital markets.
Taking an actuarial approach, Vesttoo offers data-driven risk management solutions to help insurance and reinsurance companies, and pension funds, access efficient sources of capital markets funding for risk transfer.
Using technology to analyse, measure, price and enable structuring of these risks, Vesttoo aims to open up the capital markets as a viable alternative source of reinsurance, while enabling access to relatively uncorrelated returns from these insurance linked risks for capital market investors.
The new investor, Longevitytech.fund, has taken an equity stake in Vesttoo, becoming a shareholder to back its delivery of these promises as it continues to build out its technology based risk transfer tools and solutions.
Vesttoo is one of a number of companies hoping to use advanced technology to enable insurance risk transfer to the capital markets, taking the approach of helping to increase the understanding of data underlying specific risks, to allow them to be better packaged, transferred and made investable.
Longevitytech.fund is an investor focused on global longevity-related companies, including those focused on advanced technologies, as well as fintech and insurtech startups.
“We are very happy to have Longevitytech.fund on board. Their investment is a huge vote of confidence for Vesttoo’s revolutionary risk modeling technology. Taking advantage of AI-based technologies to assess, price and transfer risk to the capital markets is the best way to bridge the insurance industry’s funding gap and face the industry’s challenges, especially post Covid-19 stress,” explained Yaniv Bertele, CEO of Vesttoo.
“We are excited to support Vesttoo’s revolutionary approach to the conservative insurance industry. The aging population and the new scientific discoveries creates an unprecedented challenge for understanding and predicting future risks,” added Petr Sramek, Managing Partner of Longevitytech.fund.
This approach of utilising the latest technology to provide an actuarial approach to financial risk management and alternative risk transfer for the Life and P&C insurance and reinsurance markets has a lot of promise to it. Technology can help to fill gaps in the understanding and measurement of risks, enabling investors to better understand and get more comfortable with them, to invest in new classes of insurance-linked opportunities.