One of Extraordinary Re’s many innovations is a patented technology process that transforms each reinsurance contract assumed on its trading platform into what are called “liquid insurance contracts,” or LICs. The LICs are allocated to the internal accounts of investors that choose to subscribe to the reinsurance contract.
“Each LIC gives the investor the right to a share of premiums received and the responsibility to cover a share of losses paid under the corresponding reinsurance contract,” explained Will Dove, Extrarordinary Re’s chairman and CEO. “They exist only within our market as a way to allocate underwriting results between investors on the platform. Investors are able to reallocate their LIC shares with other investors on the platform using the market technology we licensed from Nasdaq.”