Extraordinary Re Nears Debut through Market Technology Agreement with Nasdaq

Extraordinary Re is creating a liquid market for $22T in insurance liabilities that uses blockchain to let participants to reallocate insurance risks among themselves in a familiar format.

(Image source: Extraordinary Re homepage.)

Extraordinary Re (Princeton, N.J.) , an InsurTech creating a platform to make insurance liabilities tradable and give new insurance products access to capital sources, has signed a market technology agreement for Nasdaq (New York) to deliver matching engine technology via the Nasdaq Financial Framework architecture.  Extraordinary Re says it will deploy this technology through its patented Liquid Insurance Contract risk allocation platform. Extraordinary Re will also operate its system on a private cloud and leverage blockchain technology to transmit flow-through information to its participants. The go-live is targeted for summer 2018.

Will Dove, Chairman and CEO, Extraordinary Re.

“The agreement with Nasdaq is an important milestone in our go-to-market plan,” comments Will Dove, Chairman and Chief Executive Officer, Extraordinary Re. “Our innovative structure and technology will deliver new classes of risk to investors through a platform powered by Nasdaq’s market-leading technology.”

Extraordinary Re’s platform is embedded within a reinsurance entity, enabling access to a broad range of insurance liabilities to make them available for allocation among institutional investors. The company characterizes its platform as creating a new pathway for insurers, reinsurers and managing general agencies around the world to access capacity from the Insurance Linked Securities (ILS) market. Extraordinary Re will enable its participants to reallocate insurance risks among themselves in a familiar format, powered by tested Nasdaq technology. By leveraging blockchain technology, Extraordinary Re will says it will be able to deliver granular and real-time data to its participants and expects to deploy other applications using this technology in the future.

Agility of the Nasdaq Financial Framework

Paul McKeown, SVP, Market Technology, Nasdaq.

“Extraordinary Re is helping bring a new way of thinking for institutional investors to the global reinsurance market and we are excited to work with them in bringing this vision alive through our technology,” comments Paul McKeown, Senior VP, Market Technology, Nasdaq. “With the agility of the Nasdaq Financial Framework, we are able to provide a platform that can flexibly support new assets and new types of innovative markets, like Extraordinary Re. We look forward to expanding our relationship as they grow in this space.”

Nasdaq’s market infrastructure technologies, including trading, real-time risk, index, clearing, CSD and market surveillance systems operate in over 100 marketplaces, regulators, clearinghouses and central securities depositories across the Americas, Europe, Asia, Australia, Africa, the Middle East and the Caribbean.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For over a decade he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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