Nascent targets improved ILS transparency with new collateral management feature

Nascent Group, an insurance management and reinsurance transformer company launched last year by Andre Perez, has launched a new collateral monitoring feature to facilitate “smoother and more transparent ILS transactions” to the benefit of fund managers and investors in the space.

Bermuda-based Nascent says that the implementation of this new feature aims to support the health and growth of the insurance-linked securities (ILS) space, and aligns with the company’s mission of being a tech-driven service provider to the industry.

The collateral management feature is a new addition to the firm’s proprietary policy management platform, RUDDR, and has been designed to address collateral transparency issues, which is often a topic of debate and contention during post-loss scenarios and commutations.

Nascent says that it’s tackling this issue by integrating trustee banks’ APIs into RUDDR, which provides investors with instant collateral data while also serving as an internal process tool.

By leveraging live data to automate numerous insurance management processes, and combining trustee banks’ API capabilities with RUDDR, it enables automatic tracking of premium payments, compliance checks with investment directives, monitoring of investment maturity, and accrued interest, among other functions, explains the firm.

According to Nascent, this is the first integration of such technology with a policy management platform by an insurance manager and reinsurance transformer.

Andre Perez, Chairman of Nascent Group, commented, “There is no reason why ILS investment managers and investors should remain in the dark on their investments, especially when technology allows us to provide instant clarity. Finding a solution to this is paramount for us and will continue to be a major initiative.

“Our view is that collateral insights provided by our system are a minimum requirement for modern investors. The real advantage lies in the synergy with our policy management system, which enables us to eliminate layers of manual internal processes, providing a better and more streamlined service.”

The goal is greater transparency and efficiency via the use of technology and automation.

Expanding on the benefits of its collateral management feature, Nascent states that it will deliver NAV Lite reports “in a fraction of the time typically required”, thereby significantly cutting the current timeline.

“By striving for increased efficiency through innovation, this development aims to facilitate smoother and more transparent ILS transactions, benefiting both fund managers and investors,” said the company.

Initially, the API communication protocol has been developed with BNY Mellon, but Nascent will look to expand this API integration with other trustee banks in the near future.

After announcing its launch in April 2023, Nascent agreed its first acquisition with Bermuda Compliance Consultants Ltd. in September. Later in the year, the company hired Warren De Klerk to lead its catastrophe bond administration activities.