Both firms believe algorithmic trading presents opportunities for growth in the future of insurance
MGA Aurora has secured seed funding from QBE Ventures, the investment arm of global insurer QBE Insurance Group.
The investment will be used to enhance Aurora’s algorithmic trading proposition and, in turn, widen its product offering.
It will also allow the MGA to create new commercial distribution partnerships.
Jan-Vincent Finn, Aurora’s co-founder and chief executive, said: “Aurora is uniquely positioned to simultaneously enhance both our insurers and broking partners’ propositions.
“[Chief executive] James Orchard and his team have a fantastic understanding of our complex business and how Aurora’s role within the ecosystem will continue to develop.”
Aurora was established in 2022 and provides micro, small and medium businesses with insurance products, currently spanning over 700 trade types, via its underwriting platform.
Aurora said it shares a vision with QBE as “being part of an augmented ecosystem where complex commercial insurance is data-driven, efficient and immediate”.
‘Key opportunities’
James Orchard, chief executive at QBE Ventures, said that algorithmic trading, in addition to better leveraging automation and artificial intelligence to improve workflows and the understanding of risk, “present key opportunities for long term growth”.
Read: MGA launches commercial product with Axa backing
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According to the FCA, algorithmic trading involves a computer algorithm automatically determining individual parameters of orders – that includes the initiation of the order, or the timing, price or quantity of it, when managing it after submission.
The regulator added there is limited or no human intervention in this type of trade.
“Aurora has developed a strong asset, and we’re looking forward to helping them scale globally,” Orchard added.
Meanwhile, Bijal Patel, co-founder and chief technical officer at Aurora, said: “We’re grateful for the QBE Ventures team’s support, whose strategic alignment, shared vision for algorithmic trading and understanding of the benefits of our innovation make them an ideal investor.
“Their collaborative approach, diligence and expertise in emerging industry trends have really impressed us and we’re excited to continue working together to drive the insurance industry towards a more data-driven and efficient future.”
QBE Ventures’ mission is to invest in and build alongside early-stage technology companies worldwide, which it believes have the “potential to reshape the insurance industry”.
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