Coverage will be available through a select group of distribution partners across a wide range of commercial property categories, with limits of up to $ 100 million for available replacement values ââas well as limits per risk. offered on paper from the US operator Skyward Specialty.
In a joint interview with The Insurer, Robinson’s counterpart at reThought Cory Isaacson said the merger would allow companies to “enter the market much more together.”
Robinson said the parties have been working on the offer since October last year to seize a market opportunity that the post said could reach $ 15 billion in terms of annual premium, with inadequate coverage currently available through the National Flood supported by the government. Insurance program (NFIP).
âThe commercial flood market is big, wide open. NFIP is a product that is far from sufficient from a basic capacity and design perspective, and we believe that the private solutions available in commercial flooding are woefully insufficient of what we are going to do here. “, he added.
Isaacson added that the offer would fill a “huge void” in the market.
âA lot of the sophisticated brokers who represent this sophisticated segment of the market cannot find coverage for a lot of these things, and certainly cannot find adequate coverage, so they end up settling for less than the ultimate policyholder should. have, âhe said. commented.
Built-in UW rules
Robinson said that while the reThought platform has the characteristics of a delegated authority, the MGA has created an environment in which Skyward Specialty can be “extremely specific” about what it wants to write and is able to integrate. subscription rules and manage aggregates.
âEven though we write complex business risks, our ability to set the rules at a high level of granularity and have visibility into themâ¦ it’s like extending our underwriting philosophy through their platform,â a- he commented.
reThought was started in 2017 by former CTO of RMS Isaacson as CEO, with co-founders Nicholas Lamparelli as CUO and James Rice as Director of Sales and COO.
Lamparelli is a former QBE executive specializing in cat analysis and modeling, while Rice has held senior positions at AIR Worldwide, RMS and Guy Carpenter.
The MGA uses industry cat models, but has built its own view of risk above the models in a “very innovative way,” according to Isaacson.
The executive said the company looks at more data than anyone else and links it to the risk appetites of its risk partners.
âWe have the most flexible platform for defining and matching the interests of our capacity providers. For a capability provider working with someone who will be a delegated authority for you, if you don’t have that visibility, you’re taking a very big risk, âIsaacson added.
“We are setting the rules together so that everyone has full visibility and transparency into what ReThought is doing on their behalf,” he said.
Flood coverage will be purchased on a single line basis targeting complex risks initially in the mid-market segment and is available in all 50 states.
Through its partnership with reThought, Skyward Specialty will act as the leading market on risk, typically writing 100 percent layers and providing most of the limit required for single-location mid-market investments.