AI-powered firm looking to disrupt reinsurance market secures backing
A global alternative reinsurance and investment platform that uses proprietary artificial intelligence technology to facilitate risk transfer between insurers and institutional investors has secured $6 million Series A funding to disrupt the reinsurance market.
The latest investment from Hanaco Ventures will help Israel-based insurtech Vesttoo to further develop its insurance-linked programme (ILP) offering, an innovative multi-billion security-based investment portfolio, as well as its digital marketplace for insurance-based alternative risk transfer and investments.
Vesttoo is creating a fully digital marketplace for insurers, reinsurers and pension funds to model, structure, price and place their offering online, while giving institutional investors direct access to the untapped market of alternative reinsurance and exceptional return on risk.
Both the ILP and the marketplace are aimed at increasing liquidity and capacity in the reinsurance market and facilitating the alternative reinsurance ecosystem. An integral part of Vesttoo's business strategy is to bridge the funding gap in the reinsurance market.
Vesttoo's proprietary AI-based technology facilitates risk transfer between insurance companies and institutional investors, providing insurance-linked investments to asset managers of all types, while enhancing risk transfer and liquidity in the life and P&C insurance markets.
"Vesttoo is disrupting the reinsurance industry," said Pasha Romanovski, co-founding partner of Hanaco Ventures. "The company is building a digital marketplace and has already proven its ability to sign multi-year contracts with leading US and EU insurance and reinsurance providers. Hanaco Ventures chose to invest in Vesttoo because of the unique solution and the company's impressive founding team who will have a big impact in this untapped sector".
Yaniv Bertele (pictured), chief executive of Vesttoo, commented: "We are happy to have Hanaco on board. This is an exceptional vote of confidence in Vesttoo's unique offering. We have a significant global deal pipeline with insurers from the US, UK and mainland Europe, and are looking forward to further scaling Vesttoo's ILP and fully digital marketplace with Hanaco's support."
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