Boost Insurance has secured dedicated reinsurance facility to power its B2B insurtech development platform.
The facility is led by Nephila with participation from Markel Digital, the insurtech group within Markel Corporation, and RenaissanceRe Holdings Ltd. Boost, serving as general agent of 'A'-rated fronting carrier State National Companies, Inc., will manage a program supporting multiple insurtech startups entering the property and casualty (P&C) industry and will support all personal and commercial lines of business.
Boost CEO and founder Alex Maffeo said: "This is a landmark day for Boost because it makes us a truly one-stop shop for insurtech startups looking to bring their ideas from concept to reality.
"Limited access to licensed insurance paper and risk capacity is by far the number one barrier to entry for insurtech startups and a huge impediment to innovation in this industry. We spent the last year developing relationships with a group of the most forward-thinking (re)insurance capital providers in the world. These partners are willing to put their money where their mouth is to help insurtech startups succeed and we couldn't be happier to receive their trust and support."
Nephila managing partner Barney Schauble said: "Boost offers Nephila and the rest of the reinsurance facility members exposure to the best insurtech startups and new insurance products with the confidence that underwriting and compliance is being closely monitored by an experienced team."
According to Boost, it takes insurtech startups approximately 24 months to get from concept to live product, and access to (re)insurance capital (distinct from venture capital) is the most significant bottleneck in this process. The insurance industry moves slowly, as to be expected when the core business is about predictability, reliability and risk management, and it's often difficult for large companies to keep pace with rapidly-evolving technology.
State National Program Services executive vice president and chief underwriting officer Luke Ledbetter said: "For startups, technology reigns supreme, time is the enemy, the stakes are high, and concepts are unproven – until they're not. Boost is in position to accelerate the proof of concept for startups and usher in the future of insurance."
Source: Company Press Release