By Chris Munro

June 26 - (The Insurer) - Millennial Specialty Insurance $(MSI)$ has entered the cyber market after launching a new managed care organizations (MCOs)-focused program that can offer limits of up to $25 million on non-admitted capacity provided by Lloyd’s syndicates.

The program, which is available to MCOs of all sizes, has been designed to provide dedicated cyber capacity and coverage that addresses complex risks facing health insurers.

As MSI noted, given that MCOs collect and manage highly sensitive data, they are an attractive target for cybercriminals.

The new program has been launched to help manage that threat, especially as MSI said MCOs have generally been underserved in the cyber market, particularly on a primary basis, due to their perceived risk and overall complexity.

Through the new offering, called MSI Cyber for Managed Care Organizations, the MGA is offering limits of up to $25 million for primary and excess placements for privacy and cyber liability with technology errors and omissions and miscellaneous professional liability.

Talking to Program Manager, Rajiv Matta, chief innovation officer of MGA programs at MSI, said the new MCO-targeted program fills a gap in the market.

“This is a market that’s traditionally underserved,” he said.

“Brokers don’t get the level of service that they need from the carriers, and as an MGA, we’re stepping in with a real solution and real capacity to service this market.”

Matta explained that the new cyber program offers more than just financial protection against losses.

“The way we’re approaching cyber is that it’s not just about the protection, but it’s also about education, prevention, mitigation, event response, and then also disaster recovery plans,” Matta said.

To that end, MSI’s new cyber program provides buyers access to flexible risk management services and what the MGA said is “a market-leading breach response panel” that includes forensic analysts, privacy and defense counsel and breach coaches.

The new offering is led by senior vice president and cyber product leader Tim LeMarbre and vice president and head of cyber underwriting Tammy Kocher who both joined MSI in 2023 from BCS Financial Corporation.

Between them, LeMarbre and Kocher have 40 years of underwriting experience.

In a statement, LeMarbre said the new program was developed with a deep understanding of the evolving threats and challenges that managed care organisations face.

“We are proud to unveil a dedicated, high-capacity solution with the flexibility to deploy our significant limits wherever it is needed in an insurance program,” he said.

MSI Cyber for Managed Care Organizations is the first of multiple cyber-focused programs that MSI expects to bring to market as the MGA works to broaden its portfolio of 20-plus products.

LATEST DEVELOPMENT

Launch of the new program is the latest notable development that Baldwin Group-owned MSI, which for the first time hit $1 billion of premium in 2024.

In March, it was announced that the Baldwin Group had sponsored the formation of Texas-domiciled Builder Reciprocal Insurance Exchange (BRIE), with the startup backed by $95 million of capital from an affiliate of PE firm Gallatin Point Capital.

BRIE will provide capacity to the Baldwin Group’s builder-sourced homeowners book. That portfolio was bolstered by the acquisition of the circa $200 million book of builder-sourced homeowners business it purchased from QBE in 2022 through its deal for Westwood Insurance Agency.

MSI has been tasked with accelerating the transition of that portfolio from its existing carrier partner to BRIE.

The unveiling of BRIE was followed up in April by the launch of a commercial general liability program aimed at habitational properties.

The program provides general liability coverage to owners of eligible apartments, condominiums and townhomes, with capacity for the protection provided by an AM Best A-plus rated insurer.

More recently, Westwood’s acquisition of Hippo’s homebuilder distribution network, a unit that generated revenues of $29.2 million in the most recent trailing 12 months leading up to the deal being announced, will further bolster its portfolio.

As this publication previously reported, MSI has entered into a program administrator agreement and claims administration agreement with a Hippo affiliate on a new homebuilder program that will provide additional proprietary capacity for Westwood’s builder partners.

At the same time, Hippo and its affiliates, including fronting carrier Spinnaker Insurance Company, have committed to providing capacity and reinsurance support to both current and prospective MSI programs.

The latest deal, MSI president Amy Carlisle said, “does a lot of things for both MSI and the Baldwin retail platform”.

“First and foremost, it expands the builder agency distribution network in a pretty significant way,” she said.

“Another aspect of it is the prospective partnership with the Spinnaker team on building out additional new construction builder programs and providing additional capacity to the Westwood agency.

“In the homeowner space, capacity has become increasingly challenged over the past couple of years, so having an additional offering with Hippo on building a best-in-class program is something we’re really excited about.”