Parametric re/insurer Mythen makes debut in the US

Mythen, a new parametric insurance and reinsurance platform, has launched to cover natural catastrophe risks in the southern US region. 

Focusing on hard-to-insure properties, it was founded by insurance technology veteran Sandra DeSilva (pictured), Mythen is licensed in Texas and Bermuda. The platform will use AI, machine learning, modeling, and remote sensing to underwrite windstorm risks.

Mythen has partnered with Texas-based insurer Southlake Specialty Insurance Company, which has an AM Best A- VIII rating for fronting and leverage, while the MGU enjoys quota share coverage from partners from the wider reinsurance market, the company said. 

“We are using the latest technologies and working with highly skilled partner companies to penetrate deeper into the insurance market with products across the natural and other catastrophe risk spectrum,” said DeSilva. 

“We are motivated to help combat climate change and close the widening insurance gap by providing the technology to administer global portfolios subject to climate risk and uncertainty.

“I am delighted with the team as we are addressing critical social and environmental needs.”

Mythen Holdings Bermuda oversees Mythen Insurance Services, which operates a Texas-based managing general underwriter (MGU), claims service unit Mythen Claims Services, and Mythen Re, a Bermuda Class 3a insurer which has a fully collateralised Bermuda segregated cell, Eiger 2025.

Mythen said it uses a technology platform called WindSpeed that links data, risk, forecasting expertise and measures for managing portfolios and covering insurance risk. 

Mythen has started underwriting coastal US hurricane risk using parametric trigger products which minimise the time to pay claims as well as keeping internal expenses low. WindSpeed enables instant quoting and portfolio management, while allowing for upscaling risk and seamless hedging.

In an interview with Intelligent Insurer, DeSilva said the company aims to fill a gap in the market for commercial properties in eight states in the US southeast including Texas and Florida. 

She said these property owners have difficulty finding coverage or face high deductibles and need supplementary insurance on top of their standard policies.

DeSilva said the policies also cover areas such as construction that are typically not covered in standard insurance policies. 

She said the parametric trigger means that properties that are damaged in windstorms will receive their payments quickly once the windspeed triggers the payout, although policyholders must still attest to the damage. 

“Our coverage extends what the primary insurance coverage offers,” she said. “For that first dollar of loss, we are covering things like construction, covering losses that are excluded from their primary. We are filling in a lot of those gaps that currently exist in their current coverage.”

She said the policy has no deductible, so it gives insureds the relief that they're looking for and there is no need to send out claims adjusters.  

“As a result, there is no delay in them receiving the benefit that they're entitled to,” she said. 

While Mythen operates in a similar way to a traditional MGU, its Bermuda-based reinsurer Mythen Re also provides its own capacity, she said.  

“We have our own capacity, plus we have fantastic partners that allow us to extend that capacity further,” she said. “So that alignment really allows us as an MGU to be as efficient as possible.”

DeSilva said she has spent her career adding value to re/insurers through technology and is now applying those skills to her own company.  

“Technology has been a game changer for a lot of companies, especially with capital management and exposure management and it allows them to not just be efficient, but actually to make a good return,” she said. 

“We’ve spent the last year building out the technology to enable that. Our platform really allows us to go to market at scale to provide real time underwriting.” 

Yogesh Kumar, CEO of Southlake, said: “Mythen’s parametric solution is a prime example of Southlake’s dedication to innovation and the use of technology to drive the insurance industry forward.

“Sandra’s team is addressing the critical challenge of providing first-dollar coverage in a complex market. After seeing the demo, we immediately recognised its potential to revolutionize how businesses manage wind exposure — and knew we had to be part of it.”

Mythen currently has about 15 employees. 

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