CORRECTED-Parametric startup Mythen launches Texas MGA and Bermudian collateralized reinsurer

By David Bull

March 16 - (The Insurer) - Bermuda and Texas-based parametric startup Mythen has begun writing nat cat risks fronted by insurer Southlake Specialty, the company said in a statement on Monday.

The new startup will operate through an AI-powered insurance platform that includes an MGU, claims service unit, its own collateralised reinsurer and quota share support from the wider market.

The start-up is led by Bermuda-based insurance technology veteran Sandra DeSilva as its founding CEO.

It has initially started underwriting US coastal hurricane risk using parametric trigger products aiming to minimise the claims paying timeline and keep internal expenses low. It plans to move into other natural catastrophe perils such as flood, quake and hail.

In its statement confirming the launch, Mythen said it comprises a team of “global best-in-class” (re)insurance and technology experts “harnessing advanced technologies for providing liquidity and coverage for otherwise difficult-to-insure risks”.

It added that the team of insurance, reinsurance and technology veterans uses AI, machine learning, underwriting, modelling, remote sensing, and other technologies for developing insurance products, structuring coverage, and taking risk.

The startup’s platform includes Mythen Holdings Bermuda, which oversees Mythen Insurance Services, including a Texas-based MGU and Mythen Claims Services, as well as Mythen Re – a fully collateralised segregated cell unit called Eiger 2025.

AM Best A- paper, fronting and leverage comes from a partnership with Texas-based insurer Southlake Specialty Insurance Company, while the MGU also has quota share support from partners in the wider reinsurance market, said the statement.

Commenting on the launch, DeSilva said: “We are using the latest technologies and working with highly-skilled partner companies to penetrate deeper into the insurance market with products across the natural and other catastrophe risk spectrum.

“We are motivated to help combat climate change and close the widening insurance gap by providing the technology to administer global portfolios subject to climate risk and uncertainty.”

The startup said its product is engineered to be “simple and easily accessible” to brokers and clients, while its WindSpeed technology and online platform is designed to facilitate instant quoting and portfolio management, while allowing for “upscaling risk and seamless hedging”.

According to Mythen’s website, other members of its launch team include underwriting director Keith Hargan, formerly of Allianz Risk Transfer & Capital Solutions, and Cosmin Ardeleanu as chief technology and information security officer.

Former KPMG in Bermuda managing director Jason Carne is chairman of the start-up.

Southlake CEO Yogesh Kumar described Mythen’s parametric solutions as a “prime example” of his company’s “dedication to innovation and the use of technology to drive the insurance industry forward.”

“Sandra’s team is addressing the critical challenge of providing first-dollar coverage in a complex market. After seeing the demo, we immediately recognised its potential to revolutionise how businesses manage wind exposure, and knew we had to be part of it,” he added.