Instnt, an insurance technology company backed by venture capital, has entered a strategic partnership with global reinsurer Munich Re to expand the reinsurance capacity for its Fraud Loss Insurance product.
The product addresses the rising financial impact of fraud, which reached an estimated $485.6bn globally in 2023.
It combines AI-driven identity verification and fraud detection with insurance coverage, allowing businesses to transfer fraud risk and recover losses more effectively.
This approach enables companies to increase the number of legitimate customer onboardings while limiting exposure to identity fraud-related financial loss.
Munich Re’s support enhances Instnt’s partnerships with Accredited and Howden, reinforcing the credibility of the solution.
The arrangement also reflects Munich Re’s broader efforts to support AI-driven risk transfer through its aiSure™ platform.
Michael von Gablenz, Head of Insure AI at Munich Re and HSB, stated that Instnt merges AI-based fraud detection with financial protection in cases where the AI fails to detect fraudulent activity.
He confirmed that his team leverages insights from the aiSure™ AI insurance solution and acts as the reinsurer for the Fraud Loss Insurance product.
Instnt combines AI-based fraud detection technology with financial risk transfer, in case the AI fails to recognize fraud events. This combination of AI and fraud insurance can provide protection for companies against a wide range of fraud events.
Michael von Gablenz, Head of Insure AI at Munich Re and HSB
“My team utilizes experience and expertise from our aiSure™ AI insurance solution and acts as reinsurer behind Instnt’s Fraud Loss Insurance,” Michael von Gablenz said.
Sunil Madhu, Founder and CEO of Instnt, said the goal is to shift fraud from being an ongoing operational cost to a controllable, insurable event.
With Munich Re’s support, the product delivers underwriting, loss mitigation, and claims management functions to support this type of risk transfer.
