The Future of Insurance: Technology, Risk & Relationships

Insurance is very much the combination of actuarial science and statistics and probability together with the financial world.

Certainly in my world, because of reinsurance and insurance-linked securities and things of that nature, more than brokerage, it's a big, big part of what we do is connecting the financial markets to the insurance markets in the property space.

How do you do that? Well, I mean, there's the facet of putting together products that are connected to your underlying hedging costs.

I'll answer that question with a bit of a story about I presented at a financial conference yesterday.

in September of 2025.

And the host said I was the first insurance person at this finance conference in 40 years, since 1985.

And I was presenting there at the request of the host, Mr. Jim Grant.

And he said, talk about whatever you want.

And I thought, well, to a finance audience, what could be more interesting than insurance linked securities? Keep in mind, it's a finance audience, right? And in that world, they're looking for, well, what's the best opportunity to invest in the best risk reward? And so there's clearly risk in catastrophe insurance.

So to answer your question of how do you connect it, the best way to connect it is source capital investment.

at a superior cost of capital, at a lower cost of that capital, so you can bring that capital more efficiently to your customers.

And in this audience, I think it's really to your producers.

I'm pretty sure that in our space, We've been better at that than anybody in the world over the last 10 years.

We've gone to the capital markets.

We've become, I think as of the first quarter of 2026, we'll be the fifth or I think right now we're number seven, but we'll be the number five cat bond sponsor in the world.

And so you think about our tiny little business, $3 billion.

isn't that big in the homeowner space, but we have gone to market and acquired this capability to attract insurance-linked securities capital in the form of catastrophe bonds and bring them to market, which have proven to be a lower cost of capital.

as a diversifier to our overall, call it $7 billion reinsurance purchasing budget.

So you get really good at that.

And then you bring that lower cost of capital into your product mix so you can offer more cost competitive products.

to your end customers.

So that's the primary way that you do that.

And that involves everything from the math involved of how do you optimize a structure to take advantage of that to the relationship side of getting on planes and going to London and Munich and Zurich and Paris, New York City, Bermuda, and attracting insurance linked securities investors who want to put their capital behind you because you offer better technology better data transparency they believe your claim settlement is better they believe your underwriting is better they believe your pricing model is better they believe your insurance to value is better they believe all those things about what you put together so it's it kind of runs the gamut all the way from the the pure finance side all the way down to the blocking and tackling and relationship building of insurance that is awesome

So

I can go all day if you want