New York partner Michael Halsband was quoted in a Trading Risk article titled “Fronting Limits Constrain InsurTech Growth” capturing comments he made on a panel at the recent SIFMA IRLS 2018 Conference. The article discusses one of the major challenges facing the InsurTech industry: a lack of fronting capacity and licensed insurance paper.
On a panel aptly entitled “Insurtech and the ILS Market,” panelists explored whether InsurTech start-ups should try to build their own licensed carriers. Michael observed that given the abundance of risk capital in the market, start-ups would be better served maintaining focus on originating risk efficiently instead of trying to set up carriers. He added that the typical risks being produced by start-ups are homogenous and modellable, which should meet the requirements of potential capital partners, including the ILS sector.
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