Vesttoo, an online insurance marketplace platform offering a disruptive solution for the insurance space, has announced it has raised $6m in a Series A funding round led by venture capital fund Hanaco Ventures in a development which will continue to support the growth of Vesttoo’s Non-CAT ILS programme and increase the platform’s optionality for captives.
Vesttoo spent their first two years in existence measuring their accuracy and getting endorsed and reviewed by third party entities. Their platform functions as the world’s first fully digital insurance marketplace for non-catastrophe alternative risk transfer and investments.
Enabling risk transfer for the broader insurance market to the capital markets, the platform’s raison d’etre is to provide a streamlined and democratised complement to traditional reinsurance.
Utilising proprietary artificial intelligence technology, Vesttoo enables cedents to tap into the capital markets. Their technology serves to create objective and accurate modelling and structures the financial derivative on top of the risk modelling which is effectively the risk transfer.
Commenting on how captives could utilise Vesttoo’s marketplace, Yaniv Bertele, CEO, Vesttoo, said: “Captives could be utilising the capital markets through us to structure aggregated stop-loss corridors on top of their portfolios.”
The options on the sell side will aid captives in reducing their exposures, and Vesttoo’s platform also facilitates options for captives on the buy-side. “Captives could utilise their premium in order to invest in high grade, investment-level rated instruments on top of a very remote, low severity, high frequency loan sale deal to generate excess spreads and yields on their premiums,” Bertele said.
While full details could not be disclosed at this time, Bertele also commented on a soon-to-be-announced strategic partnership involving a rated instrument providing significant capacity for captives to invest in.
“I believe this offering will prove appealing to captives struggling to find the right rated instruments in which to invest,” Bertele said.
Vesttoo is the world’s first marketplace for non-catastrophe insurance-based risk transfer and investments. The firm’s proprietary AI-based technology facilitates risk transfer between insurance companies and institutional investors, providing insurance-linked investments to asset managers of all types. With offices in Tel-Aviv, Israel, and New York, the firm’s platform also functions to enhance risk transfer and liquidity in the Life and P&C insurance markets.