Hiscox Re and MS&AD invest in re/insurance trading insurtech
Hiscox Re, along with Japanese re/insurance group MS&AD, have invested in AkinovA, an electronic marketplace for the transfer and trading of re/insurance risk.
AkinovA's platform will have a particular focus on the transfer and trading of cyber risk, a market which it believe will face greater challenges without an electronic marketplace.
Both investors will help develop the trading platform ahead of its launch, collaborating with active participants in the re/insurance value chain, including risk cedents, brokers, re/insurers, regulators, data, index and analytics providers, and capital market participants.
“In a rapidly expanding market, it’s crucial that we partner with organisations who are on the cutting edge of innovation," said Adam Szakmary, director of underwriting, Bermuda, Hiscox Re & ILS.
"We were attracted to AkinovA’s ethos of proving a simpler and better approach to an electronic marketplace. They understand the importance of encouraging marketplace liquidity, and their strong focus on cyber risk transfer and trading was particularly appealing to us."
MS&AD Insurance Group includes subsidiaries Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance, and has invested in AkinovA through its Silicon Valley-based venture capital firm, MS&AD Ventures.
Jon Soberg, CEO of MS&AD Ventures, added: “MS&AD sees cyber as a key area of focus as cyber is a global risk which impacts trillions of dollars of insured assets already through both affirmative and silent cyber attacks, exacerbated by the interconnected world we live in.
"We believe that AkinovA’s electronic marketplace on which digital contracts will be placed and traded is needed to offer clients, brokers and capital markets solutions to mitigate their cyber risks. AkinovA’s strong push to work in concert with the industry, brokers and capital markets will deliver compelling growth for all.”
Numerous industry executives have joined AkinovA over the past few months, including Daljitt Barn, global head of cyber risk for Tokio Marine Group; Paul Jardine, former chief experience officer of XL Catlin; and Thomas Heise, former president of the Bermuda Commodities Exchange.