TransRe invests in parametric insurance specialist

New York-headquartered Transatlantic Holdings (TransRe) has invested in New Paradigm Group, a developer of parametric insurance and risk transfer solutions.

New Paradigm will use the proceeds to expand its proprietary parametric data platform as well as enhance its in-house structuring, marketing and support teams, according to a corporate statement.

New Paradigm utilizes proprietary technology and parametric triggers to provide risk transfer solutions for insurance policyholders, insurance companies and reinsurers. The company currently serves protection buyers in three countries, seven US states and one US territory.

As the frequency and severity of natural catastrophes increases, parametric risk transfer is growing in popularity due to its ability to address the protection gap, in which many types of risks are not insured or are excluded under traditional insurance programmes, the company noted. Estimates show that over the past decade as much as two-thirds of global economic losses are not currently covered by insurance. The use of data as a trigger for parametric insurance is a key component of solving this global problem, the firm said. Parametric transactions also provide more rapid, efficient claims-settlement processes than is commonly found in traditional insurance programmes, it added.

“We appreciate TransRe’s confidence in New Paradigm and look forward to further developing our business together,” said New Paradigm chairman Brad Meier. “The global reputation and experience of TransRe and their interest in participating in the development of our business will enhance our ability to remain at the leading edge of structuring parametric transactions that meet the needs of protection buyers.”

New Paradigm president Evan Glassman added: “Our proprietary data allows us to be at the forefront of the insurtech movement as we structure parametric transactions to meet the unique needs of policyholders and the insurance industry. Our relationship with TransRe will benefit New Paradigm as we expand our in-house team and work with brokers worldwide to help their clients solve problems with the protection gap.”

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

California fires risk $18bn property reconstruction cost

Marsh combines specialty unit with JLT, reshuffles management

JLT Re acquires JLT March Re, launches Iberia operations

Assurant reorganises leadership as CFO retires

Lloyd’s opens Brussels office

IoT insurance platform raises £1m

Don't miss our insurtech email newsletter - sign up today