Metromile Secures Reinsurance Partnership
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. Hudson 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 Hudson 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 Hudson Structured Capital Management 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.