Hiscox Re and MS&AD have made investments in digital insurtech firm AkinovA to support the development of its electronic marketplace for the transfer and trading of re/insurance risk.
AkinovA claimed that the investments would further accelerate its progress ahead of the marketplace’s launch.
The company is currently building its marketplace in collaboration with participants from across the re/insurance value chain, including cedents, brokers, re/insurers, regulators, data & analytics providers, and capital market players.
With this approach AkinovA hopes to develop a platform that can address the transfer and trading of risks in the rapidly growing cyber insurance market.
Adam Szakmary, Director of Underwriting Bermuda, Hiscox Re & ILS, commented on the announcement: “In a rapidly expanding market, it’s crucial that we partner with organisations who are on the cutting edge of innovation. We were attracted to AkinovA’s ethos of proving a simpler and better approach to an electronic marketplace.
“They understand the importance of encouraging marketplace liquidity, and their strong focus on cyber risk transfer and trading was particularly appealing to us. At Hiscox, we pride ourselves on being collaborative while challenging the status quo.”
Szakmary continued: “AkinovA’s pioneering approach to enhancing electronic trading and optimising the risk transfer chain takes full advantage of the benefits technology and data can provide the (re)insurance industry.
“They have successfully created and established a framework which allows the industry to invest and foster the development of a digitally native marketplace, whilst preserving marketplace independence – an essential ingredient for growth. We look forward to supporting their efforts in the evolving cyber risk transfer market.”
MS&AD made its investment in AkinovA through its Silicon Valley based venture capital firm, MS&AD Ventures, Inc.
“MS&AD sees cyber as a key area of focus as cyber is a global risk which impacts trillions of dollars of insured assets already through both affirmative and silent cyber attacks, exacerbated by the interconnected world we live in,” said Jon Soberg, Chief Executive Officer (CEO) of MS&AD Ventures.
“We believe that AkinovA’s electronic marketplace on which digital contracts will be placed and traded is needed to offer clients, brokers and capital markets solutions to mitigate their cyber risks,” Soberg added. “AkinovA’s strong push to work in concert with the industry, brokers and capital markets will deliver compelling growth for all.”