Vesttoo, an insurance risk transfer platform, has signed a partnership agreement with Clear Blue to provide the latter with reinsurance capacity totalling $1bn.
According to Vesttoo, the partnership is part of the firm’s vision to bridge the gap between the insurance and capital markets, scaling insurance-linked investments as a source for reinsurance capacity.
Vesttoo will also utilise Clear Blue’s underwriting platform, program management and data and analytical capabilities to facilitate faster reinsurance transactions and allow for more investors to gain access to a diversified portfolio of Clear Blue’s P&C risk, on an efficiently collaterised basis.
Vesttoo claims it has ‘scaled rapidly’ over its years of operation, providing reinsurance capacity to cedents using its data-driven AI technology, which allows it to model, price and structure flexible solutions for a diversified range of business lines.
The firm plans to expand its coverage to more perils in the Life and P&C sectors. In addition, it is working on digitalizing the transaction-making process, enabling it to work at greater scales. The deal with Clear Blue is an important step towards this broader goal, Vesttoo claims.
Vesttoo co-founder and chief financial engineer Alon Lifshitz said, “Clear Blue are as data-driven as we are, and together we can grow the pot efficiently. “We will use Clear Blue’s data in our models to help structure transactions with much faster time to market, all the while maintaining transparency which is critical to investors, leading to greater participation in the insurance-linked investment market.”
Clear Blue Insurance CEO and president Jerome Breslin added, “We’ve been working with Vesttoo for years, and their methodology has proven itself time and again. Their data-driven process is able to radically speed up the reinsurance process, allowing us to provide insurers with the capacity they need to thrive.”
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