Boost launches US domiciled captive cell structure for alternative capital

Boost Insurance, an company that has developed technological infrastructure for the insurance market to streamline participation, including to connect reinsurance capital with programs and portfolios, has launched Boost Re, a US domiciled captive structure the cells of which it will enable alternative capital providers to deploy capacity through.

Boost Insurance came out of stealth back in 2017, with backers at the time that included insurance-linked securities (ILS) fund manager Nephila Capital.

The insurtech has always had a mission to help insurance businesses scale through leveraging its advanced infrastructure, with access to risk capital and reinsurance capacity part of that offering.

Now, the launch of Boost Re takes that a step further, as Boost will now offer dedicated captive cells of the structure for alternative capital providers to deploy reinsurance capacity through.

Boost Re offers a turnkey captive-as-a-service solution to the likes of MGAs, insurtech, and embedded insurance customers, helping them to scale their own full-stack insurance operations.

For alternative risk capital providers, Boost Re offers “a reliable and streamlined conduit to deploy reinsurance capacity across Boost-powered insurance programs through dedicated captive cells,” the company explains.

It means ILS fund managers, or ILS investors, could provide capacity to support programs of business running through Boost’s infrastructure and Boost Re, using a dedicated and segregated cell to house their capital.

“By adding this key component behind its existing MGA infrastructure and proprietary core technology systems, Boost can claim to be the industry’s first truly vertically integrated digital insurance company,” the company stated today.

It means that Boost’s MGA, insurtech, and embedded insurance clients can provide their own reinsurance capacity, that can sit behind the programs they build on Boost’s infrastructure, and this can now be from alternative capital investors via the Boost Re cells.

“We built Boost to provide our customers with a scalable, long-term solution for building or expanding their insurance business, and Boost Re is the next stage in that vision,” explained Alex Maffeo, CEO & Founder of Boost. “By enabling our customers to build a full stack business on Boost Re’s rails, we can offer the same control, reliability, and safety of engaging directly with carriers or reinsurers – at a fraction of the time and cost.”

Boost Re is a U.S.-domiciled protected cell captive insurance company and wholly owned by Boost Insurance.

Boost can now set up and capitalise dedicated and segregated risk-transfer vehicles for risk capital providers, including alternative capital, enabling them to quickly and efficiently deploy reinsurance capacity across Boost-powered insurance programs.

“Boost Re allows us to offer even greater value to our risk capital partners,” Maffeo said. “For our third-party reinsurance partners, there’s peace of mind knowing that we are participating alongside them in the same risks. For alternative risk capital providers, Boost Re serves as a reliable, trustworthy conduit to the returns offered by the emerging asset class of insurance.”

Maffeo continued, “Given Boost’s deep partnerships with prominent reinsurance partners, robust compliance infrastructure, and multi-year track record of producing consistent underwriting returns, Boost’s stakeholders can scale with the peace of mind that they are building on a well-established foundation and a platform that can support them throughout their growth.”

With Boost Re, the insurtech is giving its clients and partners the flexibility to introduce their own reinsurance capital partnerships through a dedicated and integrated, protected cell offering, which should prove an attractive way for investors to efficiently deploy capital that are looking to back program business underwriters and insurtech’s.

The fact the structure is US domiciled could also prove attractive to some institutional investors that find offshore challenging, when it comes to owning or renting infrastructure for ILS arrangements and reinsurance capital transactions.

Capital efficiency has always been at the heart of Boost’s platform development and with this launch it closes the loop to bring capital market sources of reinsurance directly into its own infrastructure, to the benefit of its MGA, insurance and insurtech clients.

It’s a simplification of the risk transfer chain through the use of technology, which should appeal to investors wanting to work with sources of insurance underwriting, as well as to underwriters looking for efficient ways to access risk capital.