Stere, a capacity trading platform that specialises in capacity sourcing and unique deal capabilities for embedded insurance partners and MGAs, has announced that it has closed a $5 million funding round with Vida-Capital.
The investment allows for Stere to further expand its capacity trading platform, a one-stop-shop for businesses to build and launch insurance programs with capacity partners.
Stere’s trading platform offers those seeking to place or find capacity: Capacity APIs designed to improve connectivity between insurers, reinsurers, MGAs, brokers, and embedded partners, which brings speed-to-market and scalability for all parties involved.
And Capacity Trading Platform for MGAs who have an existing book of business. Based on available data of the insurance program, MGAs get access to alternative capacity sources (insurers / reinsurers) for their programs which ensures enough and proper capacity is secured on an ongoing basis
Stere’s capacity selection engine improves program administrators’ success rate by pairing human intuition with state-of-art technology.
This combination eliminates manual capacity placement pain points and inefficient post-placement steps plaguing the industry that ends up cutting carrier and reinsurer scouting time by at least 50 percent.
Additionally, Stere also works with reinsurers to create efficiency gains by digitizing their processes and making it easier and faster to place business.
Stere CEO and Founder Dogan Kaleli, said: “Vida Capital brings a tremendous amount of expertise in reinsurance, ILS and structured solutions, which supports Stere’s vision of building a trading forum of all kinds of capacity in a one-stop-shop,
“Vida’s funding will fuel further expansion of our trading platform, allowing us to continue creating the smart tech-driven solutions that our stakeholders have come to rely on to help support and grow their businesses.”
Head of Structured Credit at Vida Capital Peter Polansky, added: “We are excited to partner with the team at Stere to take reinsurance risk transfer to the next level,” We look forward to the prospect of the company offering a one-stop solution to a broad set of constituents with their capacity needs, be they traditional MGAs and brokers, insurtechs or embedded partners.
“As a reinsurance capacity provider and asset manager of insurance and reinsurance account assets, we see the value of the model Stere envisions for the future. Dogan and team have a great vision for the reinsurance market and we are excited about the strategic possibilities for both Stere and Vida on an ongoing basis.”
Furthermore, Stere raised $2 million in seed funding in December 2021 from Fin VC, with participation from Plug and Play Ventures, Sandalphon Capital and Hartford Investment Management Company, among others.
As of May 2022, Stere has signed on more than fifty MGAs, representing more than $1.5 billion in annual premium. The company has also helped more than twenty embedded insurance partners access capacity from key carriers and reinsurers.
Meanwhile, back in June, Stere expanded its operations to the Latin America insurance market as it opened a Latin America regional office.
