Speaking to The Insurer TV as part of its Close Quarter series this month, the executive said alignment of interest between reinsurer, carrier and MGA is a philosophical focus for his company where all three parties should emerge as winners.
Retention of risk for Transverse was a fundamental part of its strategy from the early stages of writing its business plan and presenting it to AM Best, he added.
But it is not the only consideration when developing relationships with reinsurers and pushing to become the partner of choice, suggested Matson.
“It’s very important that there’s good behaviour in the marketplace, and not irrational behaviour or putting premium on for premium’s sake. If things go awry or blow up it begins to put a stain on this segment,” he warned.
“Having that good behaviour as rational actors and being prudent with your partners is critical,” said the executive.
Matson said Transverse puts a significant amount of value on underwriting and the balance between demand and opportunity and what it actually looks to execute.
“It’s execution, program management, how it’s implemented, how contracts are negotiated and viewed, how your TPAs or claims services work. These are incredibly important for that alignment as well,” he commented.
As revealed by this publication, Transverse has raised $48mn of additional capital from debt and equity sources to support its growth trajectory in 2022 and beyond after building its portfolio to more than $400mn in annualised premium.
And in the interview, Matson said that with all existing investors staying in, the fundraise was validation of the progress in executing the platform’s strategy so far.
He explained that Transverse will look to continue growing relationships organically, as well as capitalise on new relationships in 2022. It will also use funds raised to support the rounding out of its portfolio and to extend its admitted licences, while plans continue to expand geographically, including with its proposed UK platform.