Aanika Biosciences, an emerging biotech company that uses microbial based technologies to improve food safety, has received acceptance into the Bermuda Monetary Authority’s (BMA) Innovation Hub.
The program will allow reinsurers to explore how the application of Aanika’s traceability and prevention technology can help reduce the size of claims while lowering premiums and expanding protection for the food and agriculture industry.
Aanika estimates its technology could help in the underwriting of nearly $100 billion in premiums linked to contamination, recalls, crop insurance as well as non-safety related claims linked to ESG practices and general product liability.
Prior to co-founding Aanika, CEO Vishaal Bhuyan spent more than a decade in finance focused on investing, managing and co-authoring multiple books on insurance-linked derivatives related to human longevity, overfishing and water scarcity.
“Climate change will wreak havoc on our food system – potentially accelerating contamination outbreaks, diseases and natural disasters that are damaging and outright destroying crops around the world,” said Aanika CEO Vishaal Bhuyan.
“The insurance industry is not yet equipped to handle the volatility of risk and magnitude of loss – and is operating with a massive blind spot,” he continued.
“In recent years insurers have adopted machine learning, satellite data and blockchain technologies to increase efficiency and more accurately price risks, but this will be the first use of synthetic biology to better prepare and protect themselves and their policyholders.”
The proof-of-concept initiative approved by the BMA will enable Aanika to partner with insurance carriers to develop ‘test policies’ for the U.S. food and agricultural market that mandate applying the microbial technology in their supply chain.
Aanika co-founder and Chief Science Officer Dr. Ellen Jorgensen says this is a unique and unprecedented opportunity to unlock the potential of synthetic biology.
“We need stable, scalable, actionable solutions now to build a more resilient global food supply, which means finding inventive ways of looking at the problem,” Aanika co-founder and Chief Science Officer Ellen Jorgensen.
“The Aanika science team has developed a way to adapt nature to meet this challenge, and it will be exciting to see how leveraging it in an unconventional way like reinsurance can have immediate as well as long-term benefits.”
