Hippo has revealed plans to form its own captive to participate in the risk and underwriting profit.
The new reinsurance structure enables the Hippo programme to broaden the footprint of the business and attract more customers.
The plans were announced as part of the introduction of a new panel of reinsurers to support Hippo’s plans for continued expansion this year.
The panel includes Arch, Markel, RenaissanceRe, TransRe and others, who reinsure the carrier behind Hippo’s largest programme.
According to Hippo Insurance, the firm’s technology, dynamic underwriting and dedicated claims handling were “key factors” in attracting the attention of reinsurers to this panel.
Ken Brandt, TransRe’s president of global underwriting operations, said: “Hippo believes that homeowners’ insurance and protection can be improved through technology.”
Brandt added: “By combining home checkups with smart monitors, they expect to reduce the number of serious events. We share that vision, and we are pleased to support Hippo’s technology-enabled products and services.”
Assaf Wand, CEO and co-founder at Hippo Insurance, said: “As we expand to even more homes across the country, a diversified reinsurance panel ensures that our customers are protected in the most effective and cost-efficient way.”