Accelerant launches Risk Exchange with access to institutional investors

Accelerant, the insurtech that helps members exchange or transfer risk more effectively and connects them with long-term capital, has launched what it is calling a Risk Exchange that can help members access risk capital, including from institutional investors.

Accelerant has a track-record for being at the forefront of developments when it comes to matching risk and capital, having already launched a reinsurance sidecar, Flywheel Re, to support its members capacity needs.

Now, the launch of the Accelerant Risk Exchange sees the company with an ambition to “reimagine insurance”, by more efficiently connecting its member specialty underwriters with insurance, reinsurance and third-party capital sources.

“From the beginning, we’ve asked ourselves, ‘How can we do more to make our Members successful?’,” explained Jeff Radke, CEO and co-founder of Accelerant.

“At the end of the day, our Members succeed when they are able to pursue all of the opportunities available in their markets. That’s only possible when they have full data transparency, great analytics for underwriting — and long-term capacity. That’s why we’re proud to unveil the Risk Exchange, which represents an important part of delivering prearranged capacity solutions for all of their business – current and future.

“By enabling our Members to access a number of different capacity providers along with Accelerant to best match the opportunity, our aim is that Accelerant Members never have to worry about capacity again.”

The Accelerant Risk Exchange is a platform that connects specialty underwriters with a hand-picked group of capacity providers, alongside the long-term capacity guarantee from Accelerant-owned insurance companies and Accelerant’s service model.

The wide range of risk capital spans the gamut from institutional investors to insurance companies, Accelerant says, enabling specialty underwriters to “find the capacity they need to write the risks they want.”

The Risk Exchange also uses data to provide underwriting insights to assist underwriters in making better decisions, with this data able to be used in assessing, pricing, and managing risk.

It also provides portfolio type tools that help underwriters manage their risk exposures, to manage and reduce their risk and improve their profitability.

“We’ve long sought to realign incentives so that insurance works better for everyone,” Matt Sternberg, Chief Operating Officer of Accelerant’s Risk Exchange said. “The Risk Exchange gives us the ability to introduce additional capacity for our Members, where every single Accelerant Member still retains the long-term capacity guarantee from the appropriate Accelerant-owned insurance company. This is a remarkable paradigm shift for the industry.”

“We are excited to expand our strong partnership with Accelerant through the innovative risk exchange model,” added Josh Koppel, Founder and Program Head of Kube Risk. “Having the opportunity to both extend our long-term commitment as well as be provided with additional capacity will help us continue executing on the long-term vision we share for our business with consistent support from the same talented group of experts that have been instrumental in our success to date.”

The company said the Risk Exchange represents the “culmination of years of work and interest in building a better way for the insurance industry to operate.”