Skyward Specialty Insurance Group and Understory Inc. have partnered to launch a new insurance solution to help US auto dealers control rising costs and volatile inventory coverage.
The new solution combines Understory’s weather technology and risk mitigation expertise with Skyward Specialty’s underwriting, claims and captive experience to create a mutualized captive property insurance structure.
Skyward says the program is member-owned and controlled, allowing dealers to make decisions to improve the protection of their assets. Plus, program members share in underwriting profits, which he suggests standard insurance companies typically keep.
Alex Kubicek, Co-Founder and CEO of Understory, commented: “To date, insurers have not addressed the growing threat of hail, which is the biggest risk in standard open lot coverage. Instead, they asked dealers to write bigger checks for less coverage.
“We are delighted to partner with Skyward Specialty to provide this innovative solution. Combining our weather modeling and technology with their P&C and captive track record and expertise solves dealers’ continued struggle to find superior coverage in a market that continues to see rising rates and volatility from standard DOL models.
Andrew Robinson, CEO of Skyward Specialty, added: “The severity and unpredictability of hailstorms and other risks have caused the market to provide inadequate insurance solutions to dealers. We are proud to partner with Understory to create an unparalleled innovative risk solution to solve this challenge.
“Applying this level of data science to solve climate challenges unique to this market and combining it with our highly specialized underwriting and claims talents will ultimately reinvent risk management and transfer for dealership owners. automobiles. Our partnership with Understory is another example of our strategy in action.
The program launched on September 1, 2022, with Skyward suggesting it already had its first members, as well as a pipeline of leads generated in partnership with a select group of specialist DOL brokers. The company adds that the program is also backed by several of the industry’s top reinsurers, which have an A-AM Best rating or better.