American International Group (AIG), Hamilton Insurance Group and Two Sigma Investments affiliates have joined forces to create an insurance platform for the small to medium-sized enterprise (SME) market.
The companies have entered into a non-binding memorandum of understanding (MoU) to form a joint venture (JV) that will establish a technology-enabled and customer-centric insurance platform for the small commercial enterprise market.
The JV will aggregate Two Sigma’s data science and technology platform, Hamilton’s technology and underwriting expertise in the SME market and AIG’s SME capabilities and global presence to enhance the position in the $76bn North American SME market.
The venture will deliver pricing and servicing using predictive analytics and an easy-to-use customer interface.
Hamilton chairman and CEO Brian Duperreault will act as chairman for the JV’s board, while AIG’s current US casualty lines executive vice president Richard Friesenhahn will assume the position of CEO.
Duperreault said: "Hamilton was founded on the premise that technology will redefine the manner in which insurance products are assessed, priced and distributed, particularly in the small commercial market.
"Since establishing our partnership with Two Sigma and our start-up operations in New Jersey, our belief in this premise has been validated by the enthusiastic reception we’ve received from wholesale and retail partners throughout the US."
In addition, Two Sigma will collaborate with both AIG and the JV to develop specialized asset allocation solutions for the unique characteristics of insurance investment portfolios.
The JV is subject to negotiation of definitive agreements and securing required permits and other regulatory approvals.
Image: AIG, Hamilton Insurance, Two Sigma to establish a technology-enabled insurance platform for the small commercial enterprise market. Photo: courtesy of Chaiwat / FreeDigitalPhotos.net.