Boost Insurance has secured a dedicated reinsurance facility to support its B2B InsurTech development platform, led by re/insurance investment manager Nephila Capital with participation from Markel Digital and RenaissanceRe Holdings.
Boost plans to manage a program that supports multiple InsurTech start-ups as they enter the property and casualty (P&C) industry across both personal and commercial lines.
Serving as a general agent of fronting carrier State National Companies, Boost can appoint start-ups as its distribution partners and grant them the freedom and functionality they need to manage their own insurance programs.
Access to re/insurance capital has historically been the most significant impediment to the development of InsurTech start-ups, which take on average 24 months to get from concept to live.
Alex Maffeo, Chief Executive Officer (CEO) and founder of Boost, said, “This is a landmark day for Boost because it makes us a truly one-stop shop for insurtech startups looking to bring their ideas from concept to reality. Limited access to licensed insurance paper and risk capacity is by far the number one barrier to entry for insurtech startups, and a huge impediment to innovation in this industry.
“We spent the last year developing relationships with a group of the most forward-thinking (re)insurance capital providers in the world. These partners are willing to put their money where their mouth is to help insurtech startups succeed and we couldn’t be happier to receive their trust and support.”
Barney Schauble, Managing Partner at Nephila, added, “Boost offers Nephila and the rest of the reinsurance facility members exposure to the best insurtech startups and new insurance products with the confidence that underwriting and compliance is being closely monitored by an experienced team.”
Luke Ledbetter, EVP & CUO of Program Services at State National, also said, “For startups, technology reigns supreme, time is the enemy, the stakes are high, and concepts are unproven – until they’re not. Boost is in position to accelerate the proof of concept for startups and usher in the future of insurance,”
In September 2017, Boost announced that it had raised $3 million from Nephila, State National Companies, Norwest Venture Partners, and other industry investors to set up its development platform.
Boost plans to offer its services digitally through an API-driven technology platform, and is currently licensed in all 50 U.S states as both a standard P&C agency and excess and surplus (E&S) broker. It expects to announce its first InsurTech partners in the coming weeks.