3 Things – Partnerships & Acquisition, AI Investment & Reinsurance Pricing, Flood and Embedded Solutions

Hi Friends! Hurricane Milton understandably was on our minds this week, and thus headlines were consumed by this news. Our hearts go out to those affected by the recent storms, including Helene, two weeks ago. We wish everyone comfort and a speedy recovery to normal. Meanwhile, conference season culminates over the next two weeks with ITC Vegas and Target Markets in back-to-back weeks. We look forward to connecting with our friends and colleagues in person. This week, we are following MGA partnerships and acquisitions, AI investment, reinsurance pricing innovation, and parametric and flood partnerships looking to fill the gap in protections for individuals and businesses.

Ambac and Distinguished Form Partnerships and a DOXA Acquisition

MGA activity continues to feature value-added partnerships and acquisitions. This week’s newsmakers are moving forward with their growth strategies by targeting specialty risks with expertise and senior leadership and growing by adding complementary businesses to grow and scale.

Ambac Financial Group has partnered with Pivix, a recently launched MGA, to enhance its specialty program offerings. Pivix, led by E&S veteran Mike Miller, aligns with Ambac’s strategic growth in the insurance distribution space. This collaboration strengthens Ambac’s ability to provide tailored products through its Cirrata platform, supporting its expansion in the program insurance market.

Distinguished Programs has partnered with Berkley to offer D&O and crime coverage for community associations. This partnership aims to provide tailored insurance solutions for associations, including condominiums and homeowner associations, addressing the unique risks these groups face. The collaboration offers streamlined coverage options, helping protect association boards from claims related to mismanagement, fraud, and other
liabilities.

DOXA Insurance has acquired Monument Sports Group (MSG), expanding its specialized offerings in the sports and entertainment sectors. With over 20 years of experience, MSG is known for providing insurance and risk management solutions to climbing gyms and amateur sports leagues. This acquisition will enable DOXA to broaden its reach in niche sports markets, leveraging MSG’s expertise and reputation. The deal enhances DOXA’s portfolio, which includes programs like the International Hole-In-One Association and others.

Pinpoint Predictive (AI) Attracts Investment and Reinsurance Pricing Launch

In the evolving insurance landscape, technology is crucial in enhancing efficiency and precision. Investments continue to fuel AI-powered innovations, improving underwriting and actuarial decisions for P&C insurers. With renewal season approaching there is a new reinsurance pricing model designed to accelerate the traditionally complex pricing process for treaty reinsurance.

Pinpoint Predictive, has closed its Series A funding round, raising over $23 million. Pinpoint’s AI-driven technology enhances underwriting and actuarial precision, improving loss ratios by 3 to 10 points. The new funding will support the platform’s growth into home, auto, and commercial markets, driving further innovation in the insurance industry. CEO Scott Ham emphasized the company’s commitment to transforming the P&C insurance space with advanced AI solutions.

hyperexponential has launched its first templated reinsurance pricing model, targeting treaty reinsurance, including Excess of Loss. The model aims to simplify and accelerate the traditionally complex pricing process by allowing reinsurers to create tailored solutions more efficiently. Available through hyperexponential’s hx Renew platform, this new tool enables reinsurers to make data-driven decisions with advanced analytics, improving risk selection and profitability.

Amwins & Floodbase Address California Flood, Polly & TruStage Enhance Coverage for Credit Unions

Companies continue to launch parametric flood insurance programs in a push to cover this niche risk in exposed locations. Meanwhile, partnerships focus on embedded offerings for personalized, instant online insurance quotes through an embedded marketplace. Both initiatives aim to address critical gaps in insurance, helping individuals secure affordable, tailored coverage.

Amwins and Floodbase have launched a first-of-its-kind parametric flood insurance program for California municipalities. Backed by an “A+” AM-rated carrier, the program uses Floodbase’s AI monitoring technology to offer rapid payouts that scale with the severity of atmospheric river flooding. This solution provides much-needed protection for municipalities facing increasing flood-related damages, filling a critical insurance gap. With the program, local governments can quickly access funds to support emergency response, infrastructure repairs, and recovery efforts, addressing a risk that has cost California billions annually.

Polly has announced a strategic partnership with TruStage, aiming to offer credit union members instant online quotes and tailored insurance options. Through Polly’s embedded insurance marketplace, members can compare and select coverage that best fits their needs, all with the flexibility of engaging with live agents or using fully digital tools. This collaboration enhances TruStage’s Auto & Home Insurance Program, providing personalized options to help members save on auto insurance and protect their assets.

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!