Amwins, the largest independent wholesale distributor of specialty insurance products in the US, has announced a minority investment in Rhodian, an Australian startup managing general agent (MGA) incubator.
Rhodian offers a suite of services including legal and compliance, finance, data analytics, capacity management, and marketing to speed up the market entry of independent underwriting agencies.
Amwins will hold a 40% stake in Rhodian. Rhodian CEO and co-founder Simon Lightbody hailed the partnership in a news release.
“We are excited to partner with one of the world’s leading independent insurance firms. Amwins has a strong and impressive culture, which aligns with our vision,” said Lightbody.
“We believe that together we can ensure the Australian agency market continues its trajectory toward being the strongest supplier of niche products to broker markets.”
According to Rhodian, the hard market, coupled with increasingly stringent regulatory requirements, has created a tough market for agencies to thrive in. The incubator wants to provide the structure and support for startups “to be powerful and compelling to the broker market.”
“Underwriting agencies are playing an ever-increasing role in delivering strong insurance products to Australia’s broker networks,” said Peter Takos, chief underwriting officer at Rhodian.
“Part of our focus is to match both domestic and international capacity with the strongest agency product offering, ensuring the evolving needs of broker clients can be met in a sustainable way.”
For its part, Amwins said it brings significant expertise and experience in the development of MGA offerings to Rhodian.
Headquartered in Charlotte, North Carolina, Amwins handles premium placements in excess of $29 billion annually.
“We are truly a global broker, and this provides great diversification in territory and class of business,” said Mark Cody, managing director of Amwins global risks.
“We are excited to work with Rhodian and assist them as they look to build out this innovative business, attracting ‘best-in-class’ talent.”
What are your thoughts on this story? Let us know in the comments below.