AFL Insurance Brokers has entered into a strategic partnership with OnRisk, a U.S-based InsurTech start-up, to advance new technology for structuring and placing high value property & casualty (P&C) risk.
The partnership will see AFL become an early adopter of the OnRisk structuring platform, which facilitates the placement process for risk professionals and improves buyer outcomes by providing a CAD-style, graphical software toolset that allows for intuitive interaction with each complex risk.
The high value P&C risk space currently accounts for more than US$350 billion of premium, and spans many challenging global risk areas, such as natural catastrophes, cyberthreats, terrorism, product liability, financial risk and other large exposures.
James Poole, AFL’s Director of Specialty and Head of AFL’s new Agile Risk Advisory (ARA) practice, said: “This platform is highly innovative and a really exciting step forward that will enable us to improve our presentation of risk transfer arrangements to our clients, to reinsurers and to ILS capital providers.“
Frank Sweeney, Chief Executive Officer (CEO) at OnRisk, also commented: “We are delighted to have the opportunity to work with a true London Market innovator such as AFL. I am confident our collaborative efforts will help demonstrate the efficacy of a disciplined, CAD-based approach to risk transfer, and enable a market shift from a reliance on manual processes to a more dynamic risk structuring environment.”
Additionally, AFL and OnRisk said they will collaborate on a number of advanced placement platform extensions that will model the transaction types most commonly used by brokers to manage high value risk.
These will include follow-form placements, facilities and pools, master and local coverages, bundled coverages, inner aggregates, time-based coverages, claim development and coverage erosion, and CAT modeling APIs, amongst others.
Sweeney continued: “Our modeling and prototyping starts with established risk sharding methods, but we are hopeful our clients can adapt our structuring tools to explore new forms of risk transfer.”