Boost Insurance said it partnered with Canopius US Insurance Holdings to provide long-term risk capacity for Boost insurance programs, allowing Boost to add to its capabilities.
The capacity provided by Canopius will help insurance programs that Boost supports, Boost said in a statement.
Canopius also made a strategic investment in Boost to fuel the expansion of its proprietary technology platform and growing partner base, Boost said. Boost will deploy the reinsurance and risk capacity provided by Canopius across a range of specialty insurance programs in a more cost-effective way than traditional one-off program business.
Canopius’ investment is part of a broader round of financing with participation from new and existing investors including RRE Ventures, Fin Capital and IA Capital Group, Boost said.
Boost will use proceeds from the investment to add several features to its technology stack, along with a new risk transfer platform, which it said it will announce in the coming weeks as it continues to improve the way business and capital flows across the insurance value chain.
“Canopius has provided capacity to Boost’s programs previously and will be deploying more across multiple existing and future lines of business,” Boost said in an email to BestWire. “Boost currently works with about a dozen (re)insurers including its close strategic partners RenRe, Canopius, and Markel along with a number of other U.S. and London markets.”
An effort to reach Canopius was not immediately successful.
Boost said its growing syndicate of reinsurers and other risk capital providers will gain more efficient access to the asset class of insurance premiums through a technology-enabled platform and modern distribution channels.
“We see enormous potential in the turnkey infrastructure that Boost has built,” Lisa Davis, chief executive officer, United States and Bermuda, Canopius, said in a statement. “By lowering the barriers to entry for both innovative products and new market entrants, Boost has created an opportunity for Canopius to unlock new technology-enabled distribution channels and premium diversification opportunities.”
Boost describes itself as a full-stack digital managing general agent platform that provides compliance, capital, and technology infrastructure to product and distribution-focused insurtechs, managing general agencies, and embedded insurance partners.
“Boost is deeply committed to providing the most comprehensive and cost effective infrastructure platform in the insurance industry,” Alex Maffeo, founder and CEO, Boost, said in a statement. “Reinsurance capacity is one of the most critical components in the insurance infrastructure stack and is one of the most difficult to build yourself.”
Canopius recently said it is entering the U.S. excess casualty market to take advantage of opportunities in one of the fastest-growing segments in the industry. It appointed Jude DiBattista as U.S. head of excess casualty. He brings more than three decades of experience and previously held key roles at Nationwide and QBE North America, Canopius said.
Underwriting entities of Canopius parent Fidentia Fortuna Holdings Ltd. have current Best’s Financial Strength Ratings of A- (Excellent).