Kin Insurance said it has upgraded its reinsurance program to enhance its disaster protection and beef up its ability to serve catastrophe prone regions, particularly in light of worsening climate change.

The Chicago-based direct-to-consumer InsurTech and home insurance startup explained the new program includes backing from more than 42 “blue chip” reinsurers and ensures a first-event loss at the 1-in-160-year probability is covered. That’s higher than the 1 in every 130-year loss requirement typically found in the industry, Kin noted.

Additionally, the program also includes more than $300 million in reinsurance for hurricane events, and most of the reinsurers have an A- or higher financial rating from A.M. Best.

Participating reinsurers include PartnerRe, Arch Re, Swiss Re and the Lloyd’s marketplace, the company said.

Kin noted in its reinsurance announcement that climate change acceleration is creating stronger and more frequent extreme weather events such as hurricanes, which make the chance of insured losses much higher. The company argues that “taller reinsurance protection” helps better protect both insureds and the company.

With the new program, Kin said it reduced reinsurance costs as a percentage of premium while also reducing risk retention as a percentage of premium in a big way.

Kin, which launched in 2016, implemented its reinsurance revamp a month after announcing plans to go public through a SPAC deal and pursue a national expansion.

In a subsequent interview with Carrier Management, Kin co-founder and CEO Sean Harper said he envisions growing Kin into an “iconic” competitor that plays a crucial role in its customers’ lives.

Source: Kin Insurance