Vesttoo link-up gives Clear Blue US$1bn reinsurance capacity

Vesttoo, the Tel Aviv-based insurance risk transfer platform, has partnered with Clear Blue to provide the P&C insurer with reinsurance capacity totalling US$1bn.

The partnership is part of Vesttoo’s ambition to bridge the gap between insurance and capital markets, scaling insurance-linked investments as a source for reinsurance capacity. In addition to its AI-powered technology and expertise in fintech, insurance and asset management, Vesttoo says it will utilise Clear Blue’s underwriting, programme management, data and analytical capabilities to facilitate faster reinsurance transactions and allow for more investors to gain access to a diversified portfolio of Clear Blue’s P&C risk.

Vesttoo, which was founded in 2018, has scaled rapidly over the last few years, providing reinsurance capacity to cedents using its data-driven AI technology, which allows it to model, price, and structure flexible solutions for a diversified range of business lines. It is already planning to expand its coverage to more perils in the P&C and Life insurance sectors while digitalising the transaction-making process to enable it to work at greater scale.

Clear Blue deepening its relationship with ‘proven’ Vesttoo

The company calls this latest partnership with Clear Blue, which is based in the US, “an important step towards this goal”.

“Clear Blue are as data-driven as we are, and together we can grow the pot efficiently,” says Alon Lifshitz, CPO and Co-Founder of Vesttoo. “We will use Clear Blue’s data in our models to help structure transactions with much faster time to market, all the while maintaining transparency which is critical to investors, leading to greater participation in the insurance-linked investment market.”

Jerome Breslin, President and CEO of Clear Blue Insurance, adds: “We’ve been working with Vesttoo for years, and their methodology has proven itself time and again. Their data-driven process is able to radically speed up the reinsurance process, allowing us to provide insurers with the capacity they need to thrive.”