Arch Capital Group Ltd. Re/insurer company from Bermuda has decided to provide reinsurance capacity to Delos Insurance Solution to increase its coverage for wildfire exposed properties in California.
The reinsurance capacity will be offered by Arch reinsurance Ltd and the Lloyd’s of London syndicate, Arch syndicate 1955 formerly known as Barbican Syndicate 1955.
Guy Carpenter who is a Broker placed the reinsurance for this newly included capacity.
According to Delos, the arrangement between Arch will result in a fivefold rise in insurance capacity for California house owners in areas that are prone to wildfires.
Delos which was created by aerospace engineers uses satellite vision and proprietary modeling tools to enumerate a wildfire exposure to a house.
The model developed by this company helps to identify the houses in the stressed area which cannot find insurance protection but also are not highly exposed to fire enabling Delos to insure houses that other insurance companies find too risky.
Kevin Stein, CEO, and Co-founder of Delos said, “Many people living in wildfire stressed areas simply cannot find affordably priced house owners insurance policies if they can find insurance policy at all. We are happy that the reinsurance industry is acknowledging that with our leading-edge models many houses in areas marked off by other companies are insurable.”
Stein added, “This new capacity means that more California House owners will now be capable to buy insurance to protect their largest investment. “It also provides an alternate option to the California Fair Plan. We are pleased to have this new opportunity and we are looking forward to increasing our relationship with reinsurance to make affordably priced insurance available to even more house owners.”