Vesttoo, an AI-based insurance-linked investment platform, continues to expand its risk-agnostic offering and P&C liabilities focus, with this news of a transaction for a large Lloyd’s syndicate in the UK that wished to place an aggregate stop-loss transaction covering multiple perils, with total subject gross net written premiums of $270 million.
Working alongside reinsurance broker Acrisure Re, Vesttoo modelled, structured, and priced the risk, finalising the terms in just over two weeks.
The engine that enabled this transaction is Vesttoo’s marketplace, which was designed to provide protection for any type of low-volatility insurance risk, as well as solutions for underserved segments of the industry.
The marketplace can support several reinsurance structures and multiple perils not often covered by insurance-linked investments, and translate those into uncorrelated assets for the diversification-hungry capital markets.
Vesttoo utilises its AI-powered modelling algorithms to calculate the terms of the finalised deal, after an insurer has gone through the initial quote stage, a process that can be done within a few weeks, and is expected to become more important in the upcoming years.
Adam Hedley, Partner of Acrisure Re and Head of Global Products at Acrisure said: “Vesttoo’s scalable solution answers a growing need in the reinsurance industry.
“The future requires speed, accuracy, and the ability to expand coverage to underserved parts of the market, as well as additional perils. Capacity from the capital markets, coupled with technology such as Vesttoo’s, is the way forward.”
With the company’s proprietary technologies, insurers using the marketplace can get an initial quote for their reinsurance needs within minutes using an intuitive interface.
Vesttoo CEO and Co-Founder, Yaniv Bertele commented: “This transaction is a perfect example of Vestto’s risk agnostic, tech-enabled marketplace approach.
“It demonstrates the value of our technology, but beyond that, it shows there is an increasing appetite in the broader capital markets for the type of insurance-linked investments we can provide.”
