HONG KONG – Guy Carpenter & Co., a global reinsurance broker and risk management services provider, has marked the third birthday of its InsurTech Initiative by announcing it has exceeded $400,000 (£250,000) in funding.
This amount is said to be the world’s largest capital-based investment for the global insurtech industry by a reinsurance broker and one of the largest of its kind in the industry.
InsurTech was highlighted as a topic of the 2017 Guy Carpenter Americas Industry Forum, where executives from across the supply chain heard about the latest innovation in the insurance industry.
Throughout the year, Guy Carpenter and its reinsurance clients, including Lloyd’s, Aegon, New York Life, Marsh, Aviva, Allianz, Zurich and Zurich Specialty, have invested through the Guy Carpenter InsurTech Investment Fund, which has access to $600,000 of capital from Guy Carpenter’s client organizations.
Some of the early investors are Hartman Capital, McKinstry and R2G Capital. Early funders have committed a combined $100,000 for the year, which Guy Carpenter is said to have completed, bringing the total current commitment to $400,000, which will be met in full by clients across Guy Carpenter’s reinsurance and insurance sectors.
The $400,000 that has been committed to the InsurTech initiative comes from funds earned by the Guy Carpenter InsurTech Investment Fund for the first year of operation (2017).
“We are very excited to celebrate the success of the program, which launched just over three years ago, but also to recognize the sheer innovation we see in the sector and the potential of what the future holds,” Guy Carpenter CEO and Chairman Olivier A. Machin said.
“The innovative leaders we have met are providing Reinsurance and Insurance clients with a robust alternative to traditional risk management. Today, they are providing tools to manage and defend against ‘major catastrophe’ and other risks, without being exposed to the volatility and ambiguity of conventional reinsurance underwriting. The $400,000 investment from our clients is the ‘big deal’ as we believe that this investment will help us take the next step, going beyond innovation and into scale.”
Yoder continued, “An investment in Guy Carpenter InsurTech will demonstrate our continued commitment to finding the best and brightest ways to make it easier for our clients to succeed in the insurance and reinsurance market. And we expect that, as was the case in the first two years of this program, our clients will be at the center of the program. The company is ready to help clients and leading innovators who believe it’s an investment that will pay dividends for years to come.”
Andrea Miteski, PhD and MD in the field of reinsurance. Long term senior insurance executive with specialization of reinsurance optimization.