Bermuda-based re/insurer Arch Capital Group Ltd. has agreed to provide reinsurance capacity to Delos Insurance Solutions to expand its coverage for wildfire-exposed homes in California.
The reinsurance capacity will be provided by Arch Reinsurance Ltd. (Bermuda) and the Lloyd’s of London syndicate, Arch Syndicate 1955 (formerly Barbican Syndicate 1955).
Broker Guy Carpenter placed the reinsurance for this newly added capacity.
According to Delos, the agreement with Arch will result in a five-fold increase in insurance capacity for California homeowners in areas prone to wildfires.
Delos, which was founded by aerospace engineers, uses satellite imagery and proprietary modeling technology to quantify a home’s wildfire exposure.
The company’s model identifies homes in stressed areas of California that cannot find insurance protection but are not highly exposed, allowing Delos to insure homes that other insurance providers consider too risky.
“Many people living in wildfire-stressed areas simply cannot find reasonably-priced homeowners insurance, if they can find insurance at all,” says Kevin Stein, CEO and co-founder of Delos. “We are pleased that the reinsurance market is recognizing that, with our leading-edge models, many homes in areas written off by other carriers are insurable.”
“This new capacity means that many more California homeowners will now be able to buy insurance to protect what for many people is their largest investment,” Stein continued.
“It provides an alternative to the California Fair Plan. We are delighted to have this new capacity, and we look forward to expanding our relationships with reinsurers to make reasonably-priced insurance available to even more homeowners.”
“Innovation in risk segmentation through the application of technology provided a key solution to help homeowners and communities afford the coverage they need, and it’s encouraging to see this added capacity in a strained market,” added Lara Mowery, Global Head of Distribution for Guy Carpenter.