Underwriting

We underwrite regulated insurance programs written by licensed primary insurers. Our goal is to support programs that have predictable loss behavior, strong operational discipline, and clear data visibility.

How We Select Risk

Before we accept reinsurance exposure, we evaluate:

• The insurer’s underwriting guidelines and pricing logic

• Historical loss experience and expected loss behavior

• How exposure is capped and structured

• The quality and reliability of policy and claims data

• The regulatory environment the insurer operates in

We only write risk that fits within established insurance frameworks and can be monitored throughout the policy period.

Diversification and Exposure Limits

Each program is structured with defined limits so we know the maximum exposure at any time. Across the broader portfolio, we diversify by line of business, geography, and loss pattern to avoid concentrated risk.

Premium and Reserve Management

Premiums are paid upfront and placed in the program’s segregated account. We divide the premium into:

• The amount earned over the life of the policy

• The portion that must remain reserved for future coverage

• Capital set aside for claims

• Collateral that can be invested in low-volatility assets

This protects policyholders, supports claims, and establishes the return profile for ONyc.

Claims Expectations and Capital Modeling

We model expected losses for each program based on past performance and the structure of the underlying risk. This helps determine how much capital must be retained and how much can safely generate collateral yield.

What We Avoid

We do not underwrite unlicensed programs, exposures that cannot be modeled, or risk structures that lack transparent data or regulatory oversight.