NEW YORK, May 10, 2018 /PRNewswire/ -- Boost Insurance ("Boost") today announced that it has secured a dedicated reinsurance facility to power its groundbreaking B2B insurtech development platform. The facility is led by Nephila with participation from Markel Digital, the insurtech group within Markel Corporation (NYSE : MKL), and RenaissanceRe Holdings Ltd (NYSE : RNR ). 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.
"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," said Boost's CEO and founder Alex Maffeo. "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 added, "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.
Luke Ledbetter, EVP & CUO of Program Services at State National explained, "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."
The Company anticipates announcing its first insurtech partners in the coming weeks and will be presenting on the Insurance Innovators Looking Ahead panel at the Dig|In conference on Wednesday, May 16th at 10:30 AM CST.
About Boost Insurance
Boost Insurance USA, Inc. ("Boost") is an independent, technology-enabled insurance platform built to enable emerging insurtech startups that take an innovative approach to insurance products, distribution, data analytics, underwriting, and claims. The Boost team is comprised of a well-rounded group of venture capital, insurance, and technology professionals which enables it to identify, vet, and support best-in-class insurtech startups with a high degree of precision. Boost helps steer entrepreneurs through the complex landscape that is insurance enterprise formation and facilitates go-to-market acceleration through its licensed subsidiary Boost Insurance Agency, Inc.
Nephila is a leading investment manager specializing in reinsurance risk. Nephila offers a broad range of investment products focusing on instruments such as insurance-linked securities, catastrophe bonds, insurance swaps, and private transactions. Nephila has assets under management of approximately $11 billion as of January 1, 2018 and has been managing institutional assets in this space since it was founded in 1998.
About Markel Digital
Markel Digital leads Markel Corporation's Insurtech engagement by evaluating emerging technologies, establishing relationships with startups and digital distribution partners, developing innovative and disruptive insurance solutions, and making strategic investments in this space. Markel Corporation (NYSE : MKL ) is a diverse financial holding company serving a variety of niche markets. The Company's principal business markets and underwrites specialty insurance products.
About RenaissanceRe Holdings Ltd
RenaissanceRe (NYSE : RNR ) is a leading global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. The Company is known for its management expertise, disciplined underwriting approach, sophisticated risk models and responsive client service. Established in 1993, RenaissanceRe has offices in Bermuda, Ireland, Singapore, Switzerland, the U.K. and the U.S. and deploys approximately $13 billion of capital resources in the market.
About State National Companies, Inc.
State National Companies, Inc. is a leading specialty provider of property and casualty insurance services across the United States. In its Program Services segment, the Company leverages its "A" (Excellent) A.M. Best rating, expansive licenses and reputation to provide access to the U.S. property and casualty insurance market in exchange for ceding fees.
Boost Insurance USA, Inc.
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SOURCE Boost Insurance USA, Inc.