Insurance Is Problem Solving

The insurance industry is not known for product innovation, consumer simplicity, or bespoke, flexible solutions. In fact, the opposite may be true.

However, the antiquated reputation of the industry is shifting as emerging Insurtechs provide novel products and services to improve consumer experience and respond to business challenges - from embedded policy offerings, cyber risk assessment, and coverage to parametric insurance for esoteric risk classes and AI for underwriting and claims.

The Insurtechs providing these offerings require a partner and capital provider with the same entrepreneurial, problem-solving mindset. Group 1001 has been that partner and capital provider, enabling the success of numerous emerging Insurtech companies, through tailored capital solutions and a thoughtful, long-term approach.

We at Group 1001 sit at the intersection of venture capital, capital markets, and insurance. We are uniquely positioned to help Insurtechs solve some of the industry’s most complex problems. Here are a few ways we’ve done that historically.

Optimizing Capital Efficiency of a Full Stack Managing General Agency (“MGA”)

Kin Insurance, a direct-to-consumer Insurtech startup, has used technology to accurately price and underwrite homeowner’s coverage in Florida’s high-CAT exposure regions since 2016. Going against the tide wasn’t easy for Kin, who needed to optimize customer acquisition costs and simultaneously launch and infuse capital into their affiliated carrier to bring their product to market faster. We provided the capital and structuring expertise to enable Kin’s business model in its nascent stages. Today, Kin has proven its business model and underwriting expertise and has also attracted other leading capital providers and raised a $1 billion valuation series D.

Risk-Bearing Capacity in a Rapidly Growing Vertical

We’ve also partnered with an MGA Insurtech startup that provides cyber insurance policies and cyber risk identification and improvement solutions. The company significantly outpaces industry average quotes to bind timelines and has expanded the availability of critical cyber coverage to more than 30 million U.S.-based SMEs.

While legacy providers of reinsurance capacity were slow to cyber adoption, Group 1001 was able to structure an on-balance sheet capital solution for the company, increasing risk-retention capacity and alleviating capital constraints for growth. The company is well-positioned to capitalize on industry tailwinds while continuing to produce innovative products, risk assessment methodologies, and superior underwriting results.

Parametric Insurance that Consumers Are Excited to Purchase

Sensible Weather provides consumers with a parametric weather ‘guarantee’ in the travel and event industries. While parametric insurance has been around for decades, its application as a consumer product that provides a refund due to inclement weather is a novel approach and requires a deep understanding of weather forecasting and meteorology that must be translated into quantifiable risk.

Group 1001 provided the capital and structuring expertise necessary to help Sensible launch its product. We have strong conviction in the continued growth of Sensible’s product in its current application and are excited to see how its proprietary underwriting technology can be leveraged for new and innovative applications across other industries.

Insurtechs Need Creative Problem Solving

We like to think we are in the business of “creative problem solving,” rather than simply functioning as an insurance holding company or as investors. The desire we have to solve problems creatively in the

insurance space is about determining what challenges we can uniquely address and how those solutions create the appropriate risk-reward profile while unlocking long-term growth for our counterparties. We are honored and humbled to partner with some of the leading companies in the Insurtech ecosystem and look forward to partnering with you and your investment in the future.

Micky Hervitz, EVP of Group 1001 Innovations, and Michael Gerold, Director of Innovation Investments, work on the G1001 Innovations Team at Group1001.