SiriusPoint backs ‘disruptive’ reinsurance-backed MGA in latest investment
Global specialty re/insurer SiriusPoint has invested in a “disruptive” reinsurance-backed MGA Honeycomb that leverages advanced artificial intelligence (AI) and computer-vision technology to offer “better” multi-family property insurance at a competitive price.
SiriusPoint will be the US MGA’s lead underwriting capacity provider. The investment is a part of its ongoing drive to invest in and partner with innovative MGAs and insurtech companies.
Honeycomb provides insurance coverage to both apartment building owners and condominium associations through its AI-enabled, end-to-end digital insurance platform. The company has to date raised $19 million, and plans to use the funds to further deepen its technological moat and expand into multiple additional states in the US.
Commercial multi-family property insurance is generally seen as either “too complex” or “too niche” by traditional insurers - leaving a gap in insurance that needs to be filled, according to Prashanth Gangu (pictured), chief operating officer and president of insurance and services at SiriusPoint.
“This is a market that is currently underserved,” Gangu said. “Honeycomb is an excellent fit for SiriusPoint’s growing partnership portfolio.
“The Honeycomb team are taking a disruptive and entrepreneurial approach to addressing customer needs in multi-family property insurance - entering a ‘no-man’s land’ for the traditional insurance industry.”
Itai Ben-Zaken, Honeycomb’s co-founder and CEO, said: "We are super excited to further enhance our great partnership with SiriusPoint who have been an amazing partner for us throughout our journey and supported us from day one. We appreciate the strong vote of confidence from SiriusPoint, and look forward to continuing to push the boundaries of what’s possible in real estate insurance together.”
Patrick Charles, head of Americas property and casualty (P&C) insurance at SiriusPoint, added: “The speed and convenience of the underwriting process is the main hook for customers and the virtual inspection process should significantly reduce underwriting expenses. The collected data also allows Honeycomb to differentiate properties, reward better quality risks with unique discounts, and continuously improve its underwriting engine.”
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