Industry veteran Ted Blanch has launched a new reinsurance brokerage with a focus on the property catastrophe sector, called COIN Re, that aims to use a client-centric pricing and ownership model radically different from industry norms.
The Florida-based broker claims that catastrophe reinsurance market economics have historically been tipped in favour of reinsurers, while client/broker interests have been misaligned, which has ultimately hurt the consumer.
COIN Re, whose name stands for Client Owned Intermediary Nexus, hopes to improve reinsurance program pricing and property insurance premiums for consumers by giving insurance companies significant ownership in the firm.
Blanch explained that COIN Re is designed to reduce overall reinsurance cost in the property field through lower reinsurance premiums, reduced frictional costs, and shared ownership, with its ultimate goal to enable insurance companies to lower operating costs to the benefit of consumers.
“We’re creating a new paradigm and disrupting the status quo,” said Blanch, now Chief Executive Officer (CEO) of COIN Re. “For example, we will provide the full range of brokerage and analytic services—but we’re willing to unbundle them and charge accordingly.”
“We will be very aggressive in reducing reinsurance spend and net cost, as well as in reducing frictional cost,” he added. “And we’ll offer an ownership interest to clients which, if taken up, will provide returns through revenue distribution and equity value accumulation.”
Blanch was CEO of E.W. Blanch & Co. between 1977 and 2000. He later sold the company and founded the reinsurance industry consultancy Ted Blanch & Associates.
Joining him as senior officers of COIN Re are President – Marketing Michael W. Cashman; Chief Financial Officer (CFO) Richard R. Allen; and Vice President Kevin A. Mora.
COIN Re is headquartered in Tampa, Florida and will make its industry debut next week as the Annual Meeting of the Property Casualty Insurers Association of America.
