You can also read a version of this article on the CatX website here.

One thing I've learned about attracting investors to insurance is that clarity matters a lot. For those unfamiliar with the industry, insurance can seem complicated and overwhelming. Structured information helps simplify these complexities, making the investment process clearer and more accessible.

At CatX, we've seen first-hand how structured submissions that is, insurance information organized clearly in a standard format lead to significantly more interest from potential investors. In fact, we’ve found that structured submissions generate roughly six times the investor engagement compared to less organized approaches.

What is a 'Structured Submission'?

Put simply, structured submissions are documents or digital files that present important insurance risk information in a clear, standardized format. Think of them like neatly organized summaries that clearly show all the details an investor needs to make an informed decision. They remove guesswork by ensuring every submission follows the same format, making them easy to understand, analyze, and compare.

Building Investor Confidence with Clear Data

Structured submissions clearly outline the risks involved, making it easier for investors to understand exactly what they're investing in. Because the information is easy to follow, investors spend less time deciphering data and more time evaluating the opportunity. This increased transparency builds confidence and often results in better pricing and quicker investment decisions.

Typically, new investors prefer simpler investments, such as those based on clear-cut conditions like hurricanes or earthquakes. However, structured submissions make even complex insurance products like those based on actual losses (known as indemnity-based contracts) easier to grasp, increasing their appeal and opening up new investment possibilities.

Expanding the Investor Base

Clear, structured submissions also attract investors who might not traditionally look at insurance markets. By removing complexity and presenting risk information simply and clearly, insurance opportunities become accessible to a broader audience, helping insurers and brokers attract new sources of capital.

Structured information allows investors to apply various analytical methods easily, providing deeper insights into the potential risks and rewards. This transparency reassures potential investors, encouraging them to explore opportunities they might have previously ignored.

Streamlining Insurance Industry Operations

Standardized submissions align with broader industry goals, such as the Lloyd’s Blueprint 2 initiative, which seeks to simplify how the insurance market operates. These standardized approaches reduce costs and improve efficiency by making data easier to process quickly and accurately. Our tool, Catamaran, fully supports these industry standards, making it straightforward for insurers and brokers to access both traditional and alternative markets.

Enabling Automated Decision-Making

One exciting aspect of structured submissions is their compatibility with automated decision-making processes, known as algorithmic underwriting. When submissions are structured clearly, they can be processed by computer systems more effectively, speeding up the evaluation and investment process. On the CatX platform, structured data helps precisely match insurance opportunities with investor requirements, ensuring faster and more accurate decisions.

Algorithmic underwriting is a significant advancement for the insurance industry, and structured submissions make this possible. Tools like Catamaran simplify this process, helping insurers and investors benefit from faster, more accurate evaluations of risk.

Conclusion

From my experience, structured submissions are essential for attracting and retaining investor interest. They simplify complex information, enhance investor confidence, and enable faster decisions, ultimately helping brokers and insurers secure better deals. At CatX, through Catamaran, we're committed to making this process easier, clearer, and more effective.

Feel free to reach out if you'd like to explore how structured submissions could benefit your approach to insurance investing or transacting risk with new sources of capital.