TAMPA, Fla., Oct. 23, 2018 /PRNewswire-PRWeb/ -- Losses to the insurance industry from Hurricane Michael, a Category 4 storm that hit the Florida Panhandle before continuing a path of destruction through several other southeastern states, will be substantial—but not, according to experts, enough to cause problems for insurers or a pullback in capacity.1 "That's great news for Floridians," says Ted Blanch, CEO of reinsurance firm COIN Re, "but it may not be quite such good news for individual insurers. Local Florida insurers—who provide much of the storm coverage in this state—are heavily covered by reinsurance, which entails a considerable cost burden."
Meanwhile, despite a series of significant world-wide weather events, the reinsurance industry is expected to show a profit in 2018.2 One reason for this, says Blanch, is that the reinsurance market is heavily tilted in favor of reinsurers, who possess significant advantages in terms of size and the ability to negotiate rates. To help level the playing field, Blanch and a team of highly experienced industry executives recently founded Tampa-based COIN Re. The new company, whose name is an acronym of Client Owned Intermediary Nexus, is based on a pricing and ownership model radically different from reinsurance broker industry norms.
COIN Re, Blanch explains, is designed to reduce overall reinsurance cost in the property field through lower reinsurance premiums, reduced frictional cost, and shared ownership of the company with client insurers. Its ultimate goal is to enable insurance companies to lower operating costs to the ultimate benefit of consumers.
"We're creating a new paradigm and disrupting the status quo," says Blanch. "For example, we will provide the full range of brokerage and analytic services—but we're willing to unbundle them and charge accordingly. We will be very aggressive in reducing reinsurance spend and net cost, as well as in reducing frictional cost. And we'll offer an ownership interest to clients which, if taken up, will provide returns through revenue distribution and equity value accumulation."
COIN Re will make its industry debut later this month at the Annual Meeting of the Property Casualty Insurers Association of America, October 28-30, at the Fontainebleau Hotel in Miami Beach.
About COIN Re:
COIN Re was founded in 2018 under the leadership of E.W. "Ted" Blanch. As an innovator spanning decades, after joining E.W. Blanch & Co. in 1958 he became CEO in 1977 and held the position until 2000. The company was sold in 2001. He then formed Ted Blanch & Associates, a consultancy to the reinsurance industry.
COIN Re believes in changing the status quo. Catastrophe reinsurance market economics have been tipped in favor of reinsurers, and client/broker interests have been misaligned, ultimately hurting the end user—the consumer. As serial innovators in the market, COIN Re's principals are aligning client/broker interests by giving insurance companies significant ownership in COIN Re, resulting in market economics tipping back to ceding companies with resultant improved reinsurance program pricing, lowered frictional costs and revenue distribution and equity value accumulation back to the insurance companies—and by doing so, potentially improve property insurance premiums for consumers.
Joining him as senior officers of COIN Re are President–Marketing Michael W. Cashman, CFO Richard R. Allen, and Vice President Kevin A. Mora. The company is headquartered in Tampa, Florida. Visit http://www.coinreinsurance.com.
1. O'Connor, Amy, "Market Changes Not Expected From Hurricane Michael; Florida Insurers 'Heavily' Reinsured," Insurance Journal, October 15, 2018.
2. "Reinsurers set for profitability gains in 2018: Moody's," Reinsurance News, March 2, 2018.
SOURCE COIN Re
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