Risk2risk has launched a non-aligned working exchange for internet trading in facultative reinsurance, that it promises will cut transactional costs by up to 75%.
The platform is being tested by leading aerospace underwriters such as the Marham Consortium, Hiscox, DE Hope and La Reunion, but Risk2risk director Richard Brindle said it would be able to support live trades by the end of this month.
Brindle said the platform would start enabling facultative reinsurance for the satellite sector, including launch vehicle flight only and in-
orbit products, but would move to original loss warranty in December and aviation, energy and bloodstock soon after.
He has invited interested underwriters to join the user group.
"We're establishing a virtual community to assist in the continual development of the exchange," Brindle said.
"We're not the sort of people who believe the internet is the answer to everything, however. Facultative reinsurance is a labour-intensive line of reinsurance that can be written more efficiently over the internet."
The Risk2risk platform creates a digital marketplace in which commoditised derivative transactions can be exchanged, cutting out frictional costs. Users can trade anonymously and get instant access to a range of bids and offers of capacity, under a strict security protocol.
Risk2risk has been funded by individuals and plans to remain non-aligned with any brokerage or insurance company.