Metromile Secures Reinsurance Partnership
12 Sep, 2017, 09:00 BST
Furthering growth and technology leadership in the Industry
SAN FRANCISCO and LONDON, Sept. 12, 2017 /PRNewswire/ -- Today, Metromile, the leader in pay-per-mile personal auto insurance, announced their partnership with global reinsurance brokerage and consultancy, JLT Re, to pioneer a risk transfer and unique reinsurance agreement, providing Metromile additional leverage for future growth. HSCM Bermuda led this reinsurance agreement which also included MAPFRE RE.
While the industry is grappling with an increase in frequency of claims, Metromile's pay-per-mile model creates a hedge against this trend making it very attractive to reinsurers because of the lower volatility in the loss ratio. In addition, Metromile's intelligent automation leverages machine learning for claims modeling, which lowers risk and further enhances the model's appeal to reinsurers. As evidence of this capability, just last month Metromile paid its first completely automated claim.
"This reinsurance agreement provides continued validation that the pay-per-mile model is efficient and highly scalable," said Dan Preston, CEO, Metromile. "It also emphasizes our innovative customer experience and strong retention which is driven by our customers' desire for technology-first solutions."
Michael Millette, managing partner of HSCM Bermuda, said, "Metromile is a leader in the technological transformation of auto insurance. We believe that they analyze and select risk skillfully, and are happy to be their partner in this book of business."
Eduardo Pérez de Lema, CEO of MAPFRE RE, has declared "we are very satisfied with this agreement which reflects our commitment to support insurance projects that require innovative reinsurance structures and involve qualified partners."
"JLT Re's Insurtech and Transportation teams led by Gregg Holtmeier and David Johnson, worked with HSCM Bermuda and MAPFRE RE to develop a bespoke risk transfer and reinsurance agreement that was made possible by Metromile's innovation, attractive margin potential and high customer lifetime value," Ed Hochberg, CEO of JLT Re (North America) Inc., said. "We are excited to embark on this journey with Metromile."
About Metromile
Metromile's pay-per-mile car insurance saves low mileage drivers $500 on average each year. In addition, Metromile's smart driving app and in-car telematics device give customers visibility into their car's general health and usage, as well as pinpoint their car's exact location via the vehicle locator, and help customers avoid parking tickets via the app's street sweeping alerts (in select cities). Metromile's pay-per-mile insurance is currently available in seven states, including Calif., Ill., N.J., Ore., Pa., Va., and Wash., and the company is focused on offering pay-per-mile insurance nationwide.
About JLT Re
JLT Re's trusted team of 700 colleagues worldwide combines market leading expertise and proprietary analytical tools with the freedom to challenge conventions. Deep specialist knowledge and extensive experience of both the reinsurance market and clients' own industries and sectors enables JLT Re to ask smarter questions, innovate and deliver better results tailored to meet client needs. JLT Re is a trading name and logo of various JLT reinsurance broking entities and divisions globally and any services provided to clients by JLT Re may be through one or more of JLT's regulated businesses.
JLT Re is part of the Jardine Lloyd Thompson Group plc.
About HSCM Bermuda
HSCM Bermuda was founded in 2015 and invests in reinsurance and insurance-linked assets across all lines of businesses through an array of innovative structures that allow risk transference, including from the life and property/casualty sectors, to the capital markets. Its focus is on core economic sectors that are likely to outgrow global GDP, offer low correlations with broader markets and are experiencing a shift from balance sheet to market financing.
About MAPFRE RE
MAPFRE RE is a global reinsurance company. It has consolidated its position as the 16th largest world reinsurer by premium volume and is a top contributor to the MAPFRE Group's revenue and profitability.
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