Stable has announced the expansion of its price risk management platform into the Energy, Fertilizer and Packaging sectors. The company’s vision with the move is to continue its rapid rollout as the world’s largest parametric insurance platform.
Simultaneously, Stable has also launched its Commercial Insurance capability, licensed as a Class 3a insurer in Bermuda, with more than 200% capital adequacy and Solvency II equivalence. The platform already operates across 300+ markets, with its simple parametric contracts backed by A-rated reinsurers.
Most customers are manufacturers and producers looking for a programmatic insurance-like solution to smooth their income by managing costs in their supply chain, according to the company.
Stable is known to offer protection for commodities that aren’t traded on futures exchanges by offering simple and targeted options-based risk management solutions that settle directly against 3rd party benchmark prices.
Richard Counsell, CEO of Stable, commented, “My goal is to build Stable into the largest parametric insurer in the world with a broad range of products across all commercial sectors. With our agricultural client base growing rapidly and profitably, we’re delighted to be able to launch protection programs for a wide range of industries beyond agriculture. With three years of successful underwriting experience and modelling under our belt and an immensely supportive panel of Risk Capital, now is the time to broaden our business into the Energy, Fertilizer and Packaging sectors, which are also contiguous areas of uncertainty for our existing client base.”
Now that the companies have started navigating through the disruption caused by Covid-19 and Russia’s invasion of Ukrainian, Stable has suggested it is seeing record demand for its innovative solution and has invested heavily in the team recently to scale up the business.
Counsell added, “In addition, as the Company becomes more confident in the profitability of our model, I have wanted to align our success with that of our Capital partners and we have now capitalised a commercial insurer in Bermuda; we applied for and, yesterday, received approval from the Bermuda Monetary Authority to be regulated as a Class 3a insurer. This will not only allow Stable to share in the economics of our underwriting but more properly reflects our heritage as a risk metric business driven by deep understanding of our markets and the underlying data.”
Stable is backed by fintech VCs including Greycroft, Notion, Anthemis and ACrew and has raised over $60 million in the past year to expand its risk management platform into other markets.
The company has grown rapidly with teams across the US and Europe and is bolstering its presence in Bermuda where the Underwriting and Risk departments are based.
