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Hello Friends! Another week in insurance with lots of news to digest but some common themes continue. This week we are following an Accelerant Sidecar Launch, Erie Tech Ventures and another cyber insurer acquisition.. here are the three things we learned: |
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Accelerant Sidecar Launch, Accelerant, an insurtech platform, announced the launch of a $175 M sidecar reinsurance investment vehicle, to increase capacity for their underwriting driven businesses. It appears the insurance industry is still attracting capital. According to AM Best reinsurance capacity has increased by $568 B but they expect that growth may slow down given the conditions we are seeing with declining GDP, rising interest rates and geopolitical turmoil. This and more conclusions are available in their reinsurance market segment report and accompanying video that does a good job explaining. |
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Erie Tech Venture Fund Erie Insurance announced the launch of Erie Strategic Ventures a tech-focused fund to make early stage investments in tech solutions for risk and consumers. They join Am Fam, Nationwide and many others who have created similar vehicles in recent years to try to leverage their capital to guide solutions that could benefit their core business. They did not disclose the total amount to be invested so it would appear they will evaluate investments on a case-by-case basis. They should have ample capital to spread around the industry but are entering at a time when the winners and losers are becoming more apparent than they used to be as the market turns. |
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At-Bay Acquires Commercial Quote Platform Another cyber unicorn uses some of their newly infused capital to acquire. Last week it was Coalition, this week At-Bay acquires Relay. Relay has a commercial quoting platform and is already integrated with At-Bay, Coalition and other insurtechs but also Chubb and traditional players. Using Relay will allow them to offer a commercial quoting platform to brokers. This indicates a strategy to diversify their product distribution and offer more than just cyber not only as a risk taker but an intermediary. We could see both Coalition, At-Bay and others become larger carriers that provide a tech forward approach and operate as MGAs, Wholesalers, Carriers and Reinsurers, covering the entire value chain. |
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