Avoiding the storm: a non-nat cat approach

“It’s all about driving a more stable and predictable outcome,” said Shevawn Barder, talking about AM Specialty’s underwriting focus.

In a world where natural catastrophes and market volatility often take centre stage, AM Specialty Insurance Company (ASIC) is carving out a unique path with a strategic focus on non-severe risks.

Shevawn Barder, chief executive officer and co-founder of AM Specialty Insurance Group, explained the significance of the company’s approach. “We focus on non-nat cat business, so we write specialty business that is attritional by nature,” she said. 

“In this way, we avoid severity.” 

This emphasis on non-nat cat risks, which are less prone to the extreme financial impacts of natural disasters, reflects a decision to build a more stable and predictable portfolio despite the volatility that currently characterises the reinsurance market. 

“We have an ‘underwriting first’ model, where we focus on the technical terms of underwriting that are demonstrated by our bench of expertise in terms of our underwriters within the company, in ASIC and our managing general agent (MGA) Pinpoint Insurance Solutions.” 

Pinpoint and the rise of MGAs

Barder called MGAs “pivotal” for the global re/insurance industry. “MGAs are playing an increasingly important role and have evolved significantly since their origins into highly sophisticated operations, writing large amounts of premium with excellent infrastructure. 

“MGAs are being established globally, bringing efficient, low-cost business and distribution access to the market coupled with high-level underwriting capabilities.

“Their success in absorbing business has been a huge factor in contributing to the excess and surplus lines market absorbing that business,” she explained.

This evolution has significantly influenced the global market, according to Barder, who added that the E&S market was currently valued at more than $100 billion in premium income.

AM Specialty’s acquisition of US MGA Pinpoint Insurance Solutions has played a crucial role in its strategy. 

“Pinpoint has been pivotal for us because it enhances our product offering, our distribution and our market expertise,” Barder explained. 

Pinpoint’s incorporation into the company ties into AM Specialty’s broader vision of innovation and growth, reflected in its recent establishment at key locations such as New York, Dallas, Milwaukee, and London. 

“We have opened an office on Lime Street that will bring us into the heart of the London Market,” Barder said. 

This move aligns with ASIC’s goal of expanding its global reach and tapping into new markets, while maintaining its core strategy.

Balancing risks

One of the key benefits of focusing on non-nat cat risks is the ability to avoid the severe financial impacts associated with natural disasters, and this focus, Barder said, is complemented by AM Specialty’s programme business management.

“We write a lot of programme business: it’s diversified in class, but it’s predominantly low limit,” she explained. 

Programme business refers to risk purchasing groups made up of insurance customers with common operations, and Barder believes it is “a natural hedge against high volatility and high nat cat exposures”. 

“Programme business requires a special skillset—you need to manage it in a very hands-on way,” she said. 

“We like to stay close to the business we write.”

This enables strong partnerships within the primary market, while buffering against the risks associated with the unpredictable nature of catastrophic events and maintaining a more balanced portfolio. 

“It’s a relationship-based business and we like to stay close to the business we write,” Barder added.

The strategic focus on non-nat cat risks is also a differentiation from a broader trend in the industry, as Barder noted: “The reinsurance market has been characterised by too much volatility, particularly due to nat cat events.” 

Watch the full interview below.

Exciting tech uses

Barder highlighted the role of technology in supporting the firm’s strategy. “Technology is a huge factor within the industry, but the industry has been a bit slow to engage with it,” she said. 

“We have a proprietary software platform that we continue to build on to enhance the underwriting and claims management processes. 

“It gives us an edge in terms of artificial intelligence and data to monitor our underwriting and maintain a high level of operational efficiency,” Barder continued.

“Technology is important to companies. For us, it helps us stay ahead of our competitors.”

“Overall, we are very excited about the future. Pinpoint will give us diversification to other lines of business on a primary basis, it will help us cut costs, and it will improve our efficiency and distribution,” she concluded. 

Shevawn Barder is the chief executive officer and co-founder of AM Specialty Insurance Group. She can be contacted at: shevawn.barder@amspecialty.com

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