Reinsurer Munich Re has agreed to back the launch of a new insurtech firm created by specialist private capital provider Sun Capital Partners and former Aviva CEO Mark Wilson.
The insurtech firm, called Abacai, will initially focus on the UK motor insurance market and will invest an initial £50m in the creation of a new AI-based insurtech platform
Munich Re will act as a long-term strategic partner to Abacai, providing data analytics for underwriting/pricing and reinsurance.
Wilson, who led Aviva between 2012 and 2018, will serve as CEO and Co-Chairman of Abacai, and Edward Spencer-Churchill, a partner and founder of Sun Capital, will also act as Co-Chairman.
The senior leadership team includes two executives from Sun Capital’s insurance distribution and underwriting business, Complete Cover Group (CCG), namely Shaun Hooper as CEO of Abacai Distribution, and Darren McCauley as CEO of Abacai Capital.
It will also include Abacai Technologies co-founders Jamie Hay, former Head of EMEA Insurtech for Goldman Sachs as MD Finance, Strategy and M&A, and Colin Price, former Director of the Transformation Practice at McKinsey&Co, as MD Transformation
“We have an ambitious vision for Abacai as a high growth disruptor,” said Mark Wilson, CEO and Co-Chairman of Abacai. “There is a massive opportunity in the fast-evolving digital insurance market and we plan to be at the forefront of the industry.
“The winners in the next decade will be those who can leverage AI and new technology to give customers simpler, more competitive products within a framework of social good,” Wilson added. “Abacai is a potent combination of expertise, technology, funding and entrepreneurialism, built on an existing highly successful underwriting and distribution platform.”
Doris Höpke, Member of the Board of Management of Munich Re, also commented: “The growth opportunity in insurtech is clear and present. We believe this management team is well positioned to build a compelling AI-based digital platform and to seize this opportunity. We are hugely excited to be working with them in data analytics and reinsurance.”
Shaun Hooper, CEO Abacai Distribution also further stated: “This is a transformative deal for CCG. It significantly accelerates our strategy and will position us uniquely as one of the UK’s leading insurtechs, leveraging the advantages of an established insurance group with a leading-edge AI platform.”
“This will allow us to provide market leading tools to our customers and offer an exceptional choice of products and service across all of our distribution channels. Alongside this exciting development we remain fully committed to the non-standard niche and to supporting our long-established partners.”
And finally, Edward Spencer-Churchill, Partner and Founder of Sun Capital and Co-Chairman of Abacai, said: “This is a unique opportunity. We have made huge progress with CCG under Shaun and Darren’s leadership and thisis an exciting next step. Mark is an exceptional executive with an extraordinary track record in the industry, and specifically in digital transformation. We look forward with excitement to the future and to accelerate the phenomenal growth our team have already delivered.”