(Image source: New Paradigm Underwriters homepage.)
New Paradigm Group, LLC (Fort Lauderdale, Fla.) a developer of parametric insurance and risk transfer solutions, today announced that it has received an investment from global reinsurance organization TransRe. New Paradigm reports that it will use the proceeds to expand its proprietary parametric data platform as well as enhance its in-house structuring, marketing and support teams. The companies declined to disclose the amount of the investment.
New Paradigm uses proprietary technology and parametric triggers to provide risk transfer solutions for insurance policyholders, insurance companies and reinsurers. New Paradigm currently serves protection buyers in three countries, seven U.S. states and one U.S. territory. The company explains its parametric offerings as a response to increased popularity of parametric risk transfer due to its ability to address the protection gap at time of increased frequency and severity of natural catastrophes, for which many types of risks are not insured or are excluded under traditional insurance programs.
“We appreciate TransRe’s confidence in New Paradigm and look forward to further developing our business together,” comments Brad Meier, Chairman, New Paradigm. “The global reputation and experience of TransRe and their interest in participating in the development of our business will enhance our ability to remain at the leading edge of structuring parametric transactions that meet the needs of protection buyers.”
“Our proprietary data allows us to be at the forefront of the InsurTech movement as we structure parametric transactions to meet the unique needs of policyholders and the insurance industry,” comments Evan Glassman, President, New Paradigm. “Our relationship with TransRe will benefit New Paradigm as we expand our in-house team and work with brokers worldwide to help their clients solve problems with the protection gap.”
TAG Financial Institutions Group, LLC (New York) served as exclusive financial advisor to New Paradigm Group. Drinker Biddle & Reath LLP (Philadelphia), led by New York-based partner Michael Halsband, represented New Paradigm Group in the private offering.