3 Things – E&S Expansions, Platform Growth & Zillow / Aon Climate Innovations

Hi Friends! The Fall conference season has begun, and we spent part of the week at WSIA’s Annual Marketplace, a beehive of activity with specialty lines continuing its momentum, powering wholesale and MGA distribution channels with plenty of business to handle. We were not at NAMIC but followed news from the conference about the current state of mutual companies looking to consolidate and band together their balance sheets to overcome recent expense ratio issues driven by inflation and loss cost trends. This week’s stories provide examples that highlight those themes. Let’s explore the three things we learned this week.

Nationwide, Concert, Acrisure, and Others back E&S Ventures

The E&S expansions from the week showcased the strong momentum we continue to see with companies looking to take advantage of opportunities with investments and other moves. Established insurers, reinsurers, and distribution companies want to capitalize on this trend with their investments and focus.

Nationwide’s venture capital arm announced participation in a $10 million Series A funding round for wholesale insurance brokerage, arqu. The funds will enhance arqu’s capabilities in the E&S market, expand into new industry verticals, and accelerate product development. arqu leverages data and technology to support broker teams in pre-underwriting and risk assessment, working alongside the major carriers that make up its capacity panel.

Concert Group, a specialty insurance provider of program management and fronting services, announced the launch of a new reinsurance sidecar, Harmony Re. The move expands their capacity, enhances their capabilities in managing portfolio risks, and improves their capital management strategies. The sidecar supports diversification efforts in an evolving insurance landscape.

Acrisure has launched a new operation in Bermuda, led by industry veteran Paul Scope, who will serve as CEO. The new entity, Acrisure Bermuda Ltd., focuses on wholesale insurance broking, starting with professional liability lines such as D&O, E&O, and cyber insurance, and expanding to property and casualty.

SURE and SageSure have launched a new non-admitted business owners policy in California to provide coverage for businesses across industries, such as restaurants, offices, retail, and artisan contractors. This offering responds to California’s increasing wildfire risks and the resulting insurance shortages. The BOP product expands SURE’s coverage options, following their previous success with dwelling fire and homeowners products in the state.

Bishop Street and Southlake Continue Platform Growth

Platforms that have launched recently continue their expansion efforts. Experienced teams lead these entities and have focused plans to take advantage of market opportunities. This recipe for success continues to define the optimistic trends for growth and expansion.

Bishop Street Underwriters continues its growth by announcing a strategic equity investment in Verve Services, a leading auto insurance managing general agency (MGA). This partnership supports Verve’s innovation and growth in the auto insurance market, leveraging advanced data analytics to deliver industry-leading results. The investment aligns with Bishop Street’s strategy to expand its platform by adding differentiated MGA businesses, strengthening Verve’s position in the evolving private passenger auto insurance landscape.

Southlake Financial Group has been upgraded to Financial Size Category VIII ($100M-$250M) by AM Best, a credit rating agency. This milestone reflects the company’s strong financial health and commitment to strategic growth. Southlake’s subsidiaries, Southlake Specialty Insurance and Westlake Specialty Insurance, maintain an A- (Excellent) rating, further solidifying their position in the market. CEO Yogesh Kumar emphasized the importance of this upgrade for attracting MGAs and reinsurers in the competitive fronting market.

Zillow Introduces Climate Risk Data and Aon’s Storm Model

We were reminded once again this week of the weather, and we continue to see innovation targeting risk advice and arming the industry with new and improved modeling technology that adapts to evolving climate risks.

Zillow has introduced climate risk data from First Street on all U.S. for-sale property listings. This data provides insights into flood, wildfire, wind, heat, and air quality risks, helping homebuyers assess potential hazards and long-term affordability. Each listing includes interactive maps and insurance recommendations. This feature aims to inform buyers of climate-related risks and is part of Zillow’s broader sustainability initiatives.

Aon has launched a new catastrophe model to assess Severe Convective Storms (SCS) in the U.S., addressing the growing risks from storms such as hail, thunderstorm winds, and tornadoes. With insured U.S. losses related to what used to be considered a secondary peril, the model provides more precise risk insights to help re/insurers manage portfolios better. Developed by Aon’s Impact Forecasting, it includes a 20-year event history, enabling firms to make informed decisions about reinsurance and portfolio management.

Join us as we continue to explore the headlines and news shaping the insurance sector, and stay tuned for more insights on the unfolding narrative of our industry!  Stay productive, stay safe and stay in touch!