Orchid Insurance launches new MGU in commercial property market

Orchid Insurance | June 16, 2020

Orchid Insurance launches new MGU in commercial property market
Orchid Underwriters Agency, LLC (Orchid Insurance), one of the largest independent managing general underwriters (MGUs) focused on catastrophe-exposed residential and commercial lines properties, has today announced the launch of a brand-new MGU called CrossCover Insurance Services (CrossCover). The new MGU will underwrite middle-market commercial property risks for wholesale broker clients beginning early in 2021. It was formed in partnership with veteran property insurance executive Scott Hansen, former chief underwriting officer and chief capacity officer at AmRisc. “Carriers now expect transparency of underwriting and accurate, timely portfolio metrics from MGUs,” said Hansen, president of CrossCover. “Orchid will provide us this with its existing portfolio tools and cutting-edge infrastructure. We believe that the current market loss results reflect an excessive focus on CAT-driven accounts, at the exclusion of other profitable E&S business, as well as an over-dependency on CAT modeling results.

Spotlight

It’s all about the data When you consider how risk and claims work, you realize they are all about data. Data drives smarter decisions about risk. Data enables faster, more accurate resolution when damage occurs. Data can even lead to proactive mitigation of damage as it unfolds. Because the availability and quality of data can have a significant impact on claims and risk, any technology that drives better and faster data capture and processing should, theoretically, lead to better risk management and claims resolution.

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INSURANCE TECHNOLOGY

Heritage Announces Strategic InsurTech Partnership with Slide

Heritage | November 29, 2021

Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, announced today that it has entered into a strategic partnership with Slide, a startup InsurTech P&C carrier led by Bruce Lucas, Heritage's former Chairman and CEO, providing it with enhanced technological capabilities and allowing it to participate in the InsurTech sector's upside. Partnership provides Heritage with the opportunity to: Leverage Slide's InsurTech capabilities to improve underwriting and rating decisions. Further capitalize on strong agency relationships by generating commission income on policies that don't meet Heritage's underwriting criteria (e.g., due to geographic concentration). Participate in the InsurTech sector without potentially significant capital requirements to develop similar capabilities internally. Based on current publicly traded InsurTech valuations, potential to generate a meaningful capital gain, which, if realized, could provide additional funds for share buybacks or debt retirement. Terms of the partnership Heritage will receive: Approximately 6% equity stake in Slide, an InsurTech P&C carrier with an estimated $250 million post-money valuation, and warrants allowing it to purchase an additional equity interest at Slide's pre-money valuation. Perpetual, royalty free license to certain aspects of Slide's software. Heritage will: Transfer ownership of Pawtucket, a dormant P&C carrier licensed in Rhode Island. Transfer ownership of First Access Insurance Group, a Florida-licensed MGA with minimal earnings. Provide access to historical claims and underwriting data. Ernie Garateix, Heritage's CEO, said, "We're excited to partner with Slide and our former colleague on this win-win opportunity. We believe this partnership will significantly accelerate development of our InsurTech capabilities, while providing us with an equity stake in an impressive startup that is developing cutting edge technology." Financial information, including material announcements about Heritage, is routinely posted on investors.heritagepci.com. About Heritage Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company. Through its insurance subsidiaries and a large network of experienced agents, the Company writes approximately $1.2 billion of gross personal and commercial residential premiums across its multi-state footprint.

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Beazley Launches Contingency Policy Covering Virtual Event Organizers

Beazley | June 22, 2020

Specialist insurer Beazley has launched a contingency policy designed to cover event organizers if a transmission failure disrupts or cancels a live virtual event. The insurer acknowledged that streaming live events is not new but the policy responds to an increase in online events under social distancing during the pandemic.

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INSURANCE TECHNOLOGY

Carvana and Root, Inc. Exclusively Partner to Develop Industry-First Integrated Auto Insurance Solutions for Carvana Customers

Carvana | August 12, 2021

Carvana (NYSE: CVNA), the leading e-commerce platform for buying and selling used cars, and Root, Inc. (NASDAQ: ROOT), the parent company of Root Insurance Company (“Root”), the leading insurtech carrier, today announced an exclusive partnership to develop integrated auto insurance solutions for Carvana’s online car buying platform. In connection with the partnership, Carvana will invest approximately $126 million in Root, Inc., subject to customary regulatory approvals. “This integrated solution will give Root exclusive access to a scaled and growing channel of prospective customers at the important insurance decision point of buying a car, which positions us to deliver on an immediate customer need and drive sustainable policyholder growth.” “In Root, we have found a partner that shares our customer focus and technology-driven approach to delivering exceptional customer experiences. We are excited to build on the success of our existing partnership by creating a unique, integrated solution,” said Carvana CEO Ernie Garcia. “We look forward to introducing our customers to Root’s seamless insurance process and believe that this integrated offering will deepen and extend our customer relationships between transactions.” “Carvana has revolutionized the used car buying experience for consumers. This partnership further elevates the Carvana experience by integrating insurance alongside car purchasing and financing decisions,” said Root CEO Alex Timm. “This integrated solution will give Root exclusive access to a scaled and growing channel of prospective customers at the important insurance decision point of buying a car, which positions us to deliver on an immediate customer need and drive sustainable policyholder growth.” Under the terms of the investment agreement, Carvana will invest approximately $126 million of primary capital in Root, Inc. in a convertible preferred security, convertible at $9.00 per share, into approximately 14 million Class A shares in Root, Inc., or an ownership interest of approximately 5% on a fully diluted basis as of today. The investment agreement also provides CAbout Caarvana with warrants for Class A shares in Root, Inc. that are linked to the performance of the commercial partnership. Ardea Partners LP is serving as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel to Root in connection with this transaction About Carvana Founded in 2012 and based in Phoenix, Carvana’s (NYSE: CVNA) mission is to change the way people buy cars. By removing the traditional dealership infrastructure and replacing it with technology and exceptional customer service, Carvana offers consumers an intuitive and convenient online car buying and financing platform. Carvana.com enables consumers to quickly and easily shop more than 45,000 vehicles, finance, trade-in or sell their current vehicle to Carvana, sign contracts, and schedule as-soon-as-next-day delivery or pickup at one of Carvana’s proprietary automated Car Vending Machines. About Root, Inc. Root, Inc. is the parent company of Root Insurance Company. Root is a technology company revolutionizing personal insurance with a pricing model based upon fairness and a modern customer experience. Root’s mobile-first customer experience is designed to make insurance simple.

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Spotlight

It’s all about the data When you consider how risk and claims work, you realize they are all about data. Data drives smarter decisions about risk. Data enables faster, more accurate resolution when damage occurs. Data can even lead to proactive mitigation of damage as it unfolds. Because the availability and quality of data can have a significant impact on claims and risk, any technology that drives better and faster data capture and processing should, theoretically, lead to better risk management and claims resolution.