Greenlight Re Innovations, part of Greenlight Capital Re, is investing in Shepherd Labs, a construction insurance MGA (managing general agent) that provides insurance options for middle-market contractors.
Simon Burton, chief executive officer at Greenlight Re, said in a press release that underwriting construction businesses has historically been a lengthy and inefficient process due to extensive data collection and entry requirements.
“We are excited to partner with Shepherd, as we believe they are able to provide enhanced underwriting data in a fraction of the time seen in the industry today.”
Because the construction industry has historically been a slow adopter of technology solutions, Shepherd said it plans to leverage new construction technologies to optimise all components of the value chain.
By integrating with construction management platforms, the company said it has access to more underwriting data at a significantly faster speed than traditional, manual data collection methods.
Justin Levine, CEO at Shepherd, said, “We’re entering a second wave of innovation in the construction industry and insurance is one of the most important frontiers for new ideas.”
Levine said his firm believes a lot of available data is not being effectively used in underwriting, and contractors are not being recognised for the investments they are making in technology to help mitigate risk.
“We believe contractors should be underwritten not only based on the nature of their work, but also the behavioral data that exists about the way they deliver projects,” he said.
“The team at Greenlight understood our vision immediately and is already helping us expand upon it. We’re grateful for their support as part of our seed financing.”