Vesttoo: Using AI to manage actuarial risk through the capital markets

Vesttoo: Using AI to manage actuarial risk through the capital markets

Written by Roger Peverelli and Reggy de Feniks - Founders The DIA Community on 5 Jan, 2021

In these volatile times, insurers are challenged to find innovative methods to limit risk exposure and control costs in order to stimulate growth and stay afloat.
Traditional reinsurance is very limited in terms of capacity – the vast majority of reinsurance deals are concentrated in a small number of global reinsurers. Reinsurers are facing the same challenges their clients are facing, leading to increasingly costly traditional reinsurance deals, and even more limited capacity. Furthermore, traditional risk models employed for reinsurance provide much less accurate assessment of risks. All of these factors have led to a large gap between supply and demand.

Vesttoo provides a solution for the acute issues facing the insurance industry in today’s volatile economic environment, providing stability and capital in the midst of the covid- pandemic.  Vesttoo has developed advanced technologies for data-driven risk management, translating actuarial risk to financial risk through the capital markets. It specializes in risk modeling and alternative risk transfer for the Life and P&C markets, providing insurers with a low-cost strategic risk management solution for immediate capital relief and liability hedging. As a one-stop-shop solution provider, Vesttoo handles every aspect from the deal, using its proprietary AI- and Machine Learning stochastic algorithms, creating highly accurate risk models and forecasts

Seamlessly connecting insurers and investors
Vesttoo has already executed its first deals this year and has dozens of other deals in the pipeline, covering hundreds of millions of insurance risk. Vesttoo has been accepted to IBM’s Alpha Zone accelerator, as well as the Citigroup accelerator, with overwhelming positive feedback from industry leaders. Vesttoo is now in the midst of building the first insurance risk transfer marketplace for P&C and longevity-linked insurance assets, to seamlessly connect insurers and investors, creating a world where insurance and capital markets are fused and globally accessible.



How it works
The process starts with insurers, pension schemes and reinsurers working with Vesttoo to decide on the characteristics of">

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