CatX, a marketplace that connects (re)insurers and brokers with alternative capital, announced the launch of Catamaran, a stand-alone artificial-intelligence powered tool for the creation and analysis of reinsurance submissions.
Brokers and underwriters can use Catamaran to prepare high-quality structured submissions, by uploading any existing documentation or modelling files.
Submissions are used by brokers and underwriters to present insurance risks to potential investors or reinsurers.
Catamaran’s AI model enables the extraction of any data point for digital submissions. The tool provides feedback on investor interest from CatX’s institutional partners and indicative pricing. Users can also export submissions in standard insurance file formats like MRCV-3 or ACORD.
Catamaran’s structured submissions broaden the appeal of insurance opportunities to a diverse group of investors. By integrating directly with the CatX platform, users can utilize third-party risk models from providers like RMS and Cybercube, presenting risks in a format that is investor-friendly.
Investors and reinsurers will be able to use Catamaran to analyze incoming submissions and manage transaction pipelines. Investors can run analyses to extract key information about underlying portfolio and modelling data.
They can also compare versions to identify similarities, differences, or changes in conditions and wordings. On the CatX platform, opportunities are matched with funds that define their investment preferences across minimum rates, cedents, underwriters, regions, and perils.
We have seen first-hand how effective structured digital submissions can be in securing better-priced capacity from institutional investors. They will help to grow the alternative capital market through enhanced transparency which supports decision-making and helps to attract a broader investor base
Benedict Altier, CEO of CatX
“Artificial intelligence will play a key role in helping the industry improve standardization, while still requiring underwriters and brokers to review key details to ensure accuracy,” said Benedict Altier.
“With Catamaran, we are not only improving the quality of submissions but also paving the way for more advanced underwriting processes,” said Lucas Schneider, CTO of CatX. “Our machine-readable submissions are designed to facilitate algorithmic underwriting, ensuring that opportunities are accurately matched with the right markets.”
“Catamaran is the easiest way to bring submissions to new capital sources. The tool can automatically build a comprehensive deal page containing structured transaction information, contracts and modelling files.” said Felix Terpstra, Lead Engineer of CatX. “Automating the basics allows underwriters and brokers to focus on getting the details right, therefore producing higher quality submissions with quicker turnaround times.”
CatX connects (re)insurers and brokers with new sources of alternative capital from institutional investors, helping to unlock a new asset class for insurance risk.
Through the platform, brokers and insurers can get access to capital from funds with more than $500 billion in total assets under management.
Funds can leverage world-class models and analytics and a streamlined process to invest in opportunities across insurance risk, from natural catastrophes to cyber.
In February, CatX has raised $2.7 mn in seed funding. Its backers include top Silicon Valley venture capital firms and angel investors from leading proprietary trading firms and hedge funds.
The funding round marks a key milestone for the company in its mission to bridge the gap between supply and demand in the reinsurance industry.
Earlier this year, CatX was accepted into the startup accelerator programme Y-Combinator, which has helped to build hundreds of successful companies including household names like Airbnb, Instacart, Doordash, Monzo and Dropbox. CatX was also named by TechCrunch as one of its favorite YC startups following its debut at the accelerator’s demo day in September.
The insurance sector is facing a critical challenge due to a shortage in reinsurance capital which is needed to protect insurers from major losses. This has led to substantial price increases, especially for risks like natural catastrophes and cyber threats.
In some cases, this has forced insurers to limit their coverage or completely stop writing business such as hurricane insurance in Florida. CatX’s innovative solution to this problem is to introduce more alternative capital to the market. They do this by offering high-return investment opportunities to institutional investors and providing them with the tools they need to understand insurance risks.
by Peter Sonner
