3 Things – Cyber & Specialty Buzz, Property Exits & Insurance-Backed Investment Initiatives

Hi Friends!  The pulse of the insurance industry continues to quicken, adapting and evolving to the demands of the modern world. This week, as we traverse the ever-shifting sands of cyber expansions and specialty sector innovations, the landscape brims with both challenges and opportunities. Established players recalibrate, newcomers seize the stage, and innovation remains the industry’s driving force. Let’s dive deep into the week’s proceedings, dissecting the myriad developments and discerning the trends that are shaping our industry’s future, as we delve into the three things we learned this week.


Cyber Shifts and Specialty Sector Buzz

The cyber realm echoed with significant developments this week. Coalition, a noteworthy name in the field, broadened its horizons with an expansion into Canada, while also cementing an avant-garde partnership with global insurer MS&AD in Japan for cybersecurity solutions. This initiative from MS&AD’s digital innovation team showcases the insurer’s commitment to industry transformation. Concurrently, the specialty sector bloomed with a series of launches: Willis Towers Watson debuted their MGU, Verita, focusing on tailored risk management products, and Boost Insurance partnered with Canopius US, harnessing the latter’s tech infrastructure for novel distribution channels. MGT Partners acquired CM Select from Church Mutual to fortify their tech platform for commercial P&C products. Boost Insurance announces a strategic partnership with Canopius US.  In another stride, AXIS Capital and Stone Point Credit unveiled Monarch Re, a collateralized reinsurer, infusing the specialty market with $400 million equity. These advances signify the specialty sector’s dynamism, leveraging current hard market conditions.


High-Net-Worth Insurance: Exits and Entrances

Nationwide, following AIG’s lead, revealed the discontinuation of their Private Client Group, with E&S markets becoming increasingly attractive for high-net-worth property insurances. But the space is far from vacant: Branch, despite its prior setbacks, has secured fresh funding, albeit at a potentially reduced valuation. Openly, the homeowners insurtech, has raised a commendable $100 million in its Series D round. Loggerhead, on the other hand, clinched a deal with Progressive, absorbing a part of the latter’s Florida home policies set for non-renewal. With Q3 results from public insurtechs looming, market analysts, including S&P and BMO Capital Markets, are adopting a cautious stance.


Spotlight on Insurance-Backed Investment Initiatives

Launching with pomp, the Viewpoint Forward Network promises to be a nexus for innovation, market insights, and fostering business partnerships in the insurance sector. Boasting members from numerous insurance heavyweights, the network seems poised for influence. On the funding front, Allium, an analytics product provider for brokers, bagged a $750,000 pre-seed round, and Reserv, known for its AI-powered claims processing, secured $20 million in a Series A round. Another AI entrant, Liberate, stepped into the arena, aiming to revolutionize the loss reporting process with its FNOL-solution

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!