There is no shortage of research and companies looking at extreme climate events to create new and better models that will make insurers better. A team of scientists get together looking to take their wisdom and insights, wrap it in software and go to London, Bermuda and elsewhere to sell that software to companies in the insurance ecosystem with the pitch of “license this and we can help you reduce risk and price better”. This has worked for decades and continues to work. But the market is getting crowded as more expertise comes to market with more solutions. How do you differentiate yourself when competition gets that crowded?
One way is to flip the business model.
Kettle is case in point. Kettle is a reinsurance MGA that secures reinsurance for carriers. Their initial focus was on wildfire. Their technical team went to work building a superior wildfire model. But…instead of selling the model to the market, they make it available for companies that will implement it and transact with them on their reinsurance exposure for wildfire. Not only is this different, it’s actually economical because it ties the incentives of the carrier and reinsurer together. The reinsurer knows the view of risk a carrier will have around wildfire because they are providing the models which will build that view. This alignment of interest is crucial to a healthy carrier<>reinsurer relationship.
In this episode of Profiles in Risk, Tony chats with Andrew Engler, Co-Founder and CEO at Kettle. They’re aiming to be a different Kettle of fish with an incredible mission of being the biggest safety net to the world against climate change through insurance and reinsurance. They’re a reinsurance MGA and a micro-reinsurer. This is one incredible episode.
Andrew Engler: https://www.linkedin.com/in/ericandre…