New Paradigm Group, a Florida-based developer of parametric insurance and risk transfer solutions, has announced that it has received an investment from global reinsurer TransRe, the reinsurance arm of Alleghany Corporation.
New Paradigm is reportedly to use the proceeds to expand its proprietary parametric data platform and also to enhance its in-house training structure, marketing, and support teams.
New Paradigm, which leverages proprietary technology and parametric triggers to provide risk transfer solutions to the re/insurance industry, currently serves protection buyers in three countries, seven U.S. states, and one U.S. territory.
Parametric insurance solutions are increasing in popularity as they produce rapid pay-outs post-event, and, at a time when the frequency and severity of natural catastrophe events around the world is on the rise, such a structure can help to rebuild economies and societies when disaster does strike.
Chairman of New Paradigm, Brad Meier, said: “We appreciate TransRe’s confidence in New Paradigm and look forward to further developing our business together. The global reputation and experience of TransRe and their interest in participating in the development of our business will enhance our ability to remain at the leading edge of structuring parametric transactions that meet the needs of protection buyers.”
Meier previously served as Chief Executive Officer (CEO) and President of Universal Insurance Holdings, the Florida-based property and casualty specialist, from November 1990 to February 2013, and has a history of developing successful insurance and risk transfer businesses.
He was one of the founders of Universal Insurance, and during his time with the firm, it became one of the top-three leading underwriters of homeowners’ insurance in the state of Florida.
New Paradigm President, Evan Glassman, added: “Our proprietary data allows us to be at the forefront of the insurtech movement as we structure parametric transactions to meet the unique needs of policyholders and the insurance industry.
“Our relationship with TransRe will benefit New Paradigm as we expand our in-house team and work with brokers worldwide to help their clients solve problems with the protection gap.”