Metromile Strikes Reinsurance Partnership with JLT Re

JLT worked with HSCM Bermuda and MAPFRE RE to develop a bespoke risk transfer and reinsurance agreement made possible by Metromile’s innovation.

(Image credit: Scott/Skippy.)

Metromile (San Francisco) has undertaken a reinsurance partnership with global reinsurance brokerage and consultancy, JLT Re (London). The insurer, which has pioneered a telematics-driven pay-per-mile insurance approach, says that its partnership with JLT Re will pioneer a risk transfer and unique reinsurance agreement, providing Metromile additional leverage for future growth. Metromile reports that HSCM Bermuda led this reinsurance agreement, which also included MAPFRE RE.

Ed Hochberg, CEO, JLT Re (North America) Inc.

“JLT Re’s Insurtech and Transportation teams led by Gregg Holtmeier and David Johnson, worked with HSCM Bermuda 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,” says Ed Hochberg, CEO, JLT Re (North America) Inc. “We are excited to embark on this journey with Metromile.”

The reinsurance agreement validates Metromile’s pay-per-mile model as efficient and highly scalable, according to 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.”

Dan Preston, CEO, Metromile.

Metromile made its pay-per-mile gambit at a time when—despite the proliferation of collision avoidance technology and the birth of autonomous vehicles—the auto insurance industry has faced increased frequency of claims. Metromile asserts that its usage model creates a hedge against this trend, making it very attractive to reinsurers because of the lower volatility in the loss ratio. Metromile’s also cites its intelligent automation leverages machine learning for claims modeling, which it says lowers risk and further enhances the model’s appeal to reinsurers. Metromile announced the launch of automated claim capabilities in July 2017.

A Leader in the Technological Transformation of Auto Insurance

“Metromile is a leader in the technological transformation of auto insurance,” comments Michael Millette, managing partner, HSCM Bermuda.  “We believe that they analyze and select risk skillfully, and are happy to be their partner in this book of business.”

MAPFRE RE CEO Eduardo Pérez de Lema comments, “we are very satisfied with this agreement which reflects our commitment to support insurance projects that require innovative reinsurance structures and involve qualified partners.”

Metromile Launches AI-Driven Automated Claims Service

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, 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 or (503) 936-2803.

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