Briefing: Advanced price risk underwriting can open up new markets for insurance

commodities trading

One AI-powered MGA with hedge fund experience has created a model that allows it to accurately underwrite price protection insurance for raw materials

Insurance, at its very best, is a beautifully simple product that provides individuals and companies with the confidence to take measured risks, safe in the knowledge that, should the worst happen, some of the consequences can be mitigated or avoided. 

When the very first marine underwriters emerged in the ports of Europe, it was that promise of restitution and risk mitigation that allowed ships to navigate the globe and plant the seed that turned into the global trade networks we all enjoy today. 

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