How Insurance-Linked Assets Offer Uncorrelated, Diversified Investments

When Vesttoo CEO Yaniv Bertele co-founded the Israeli-based insurtech firm in 2018, he was confronted with a global reinsurance market that hadn’t changed much since 1842, when Cologne Re was launched as the first professional reinsurance company.

“The industry hasn’t been disrupted in the 200 years since it was established,” Bertele says. “It’s very centralized and inaccessible to many insurance companies, as well as to a wide range of investors that would otherwise be interested in investing in this area, such as institutional investors, banks, family offices, high-net-worth individuals and retail investors.”

Risk had mainly been redistributed within the insurance industry, and investors needed to have industry relationships to access this part of the market. Some risk has been transferred to the capital markets since the early days of companies like Cologne Re and Swiss Re, but only to a very limited extent. 

“Insurers don’t have a common language with the capital markets or an intermediary to bridge this gap, and this is where Vesttoo comes in,” says Bertele.

Read more on Bloomberg about how Insurance-Linked Assets offer uncorrelated, diversified investments.