Verde Offers a Tech-Enabled Focus on ESG

Verde, backed by White Bear Managers, is a Financial Lines MGA that supports a more sustainable future.

It was founded in September 2023 by two underwriters, James Pallett, who brings over 10 years of brokerage and underwriting experience in Financial Lines, and James Reynolds, who has been in the Professional and Financial Risks market for over 17 years.

While Verde initially began primarily as a Commercial Crime MGA backed by Lloyd’s, they now also offer coverage for Directors and Officers (D&O) Liability and Management Liability (ML). Notably, Verde can blend other lines of business — such as Employment Practices Liability (EPL); Corporate Legal Liability (CLL); and Pension Trustee Liability (PTL) — alongside the D&O.

A tech-enabled focus on ESG

James R. and James P. sought to build a business that could be profitable during the full course of the market cycle, independent of changing rates. They looked back on accessible data — 20,000 companies across multiple lines of business — and overlaid an ESG score to discover that better ESG scores resulted in better loss ratios across all lines.

Verde’s technology enhances their bespoke offerings and rapid response times. Their system can intelligently modify data from external rating agencies to evaluate environmental governance criteria through the lens of insurance. As a result, Verde can provide unique blended policies to nearly any entity, while significantly cutting down their turnaround times to less than 48 hours.

Notably, this focus on sustainability also means that Verde gives back to its community and the planet. For every policy they write, they plant a tree – they’ve already planted over a hundred to date – and they donate a percentage of profits to environmental or social causes. The team also regularly engages with local communities, such as their recent initiative to support an educational charity that gives kids from disadvantaged backgrounds career opportunities.

Relationship with Accelerant

Five months after its founding, Verde joined Accelerant as a Member, motivated by Accelerant’s similarly quick decision time.

“Speed is key for an MGA — in our world, if you don’t move quickly, you get left behind,” said James R. “Accelerant provides timely responses to our ideas, so we can action them right away.”

Through Accelerant, Verde can also tap into a vast third party network, such as the legal provider Accelerant referred Verde to for support drafting their bespoke market leading wording.

A Time-Sensitive Opportunity

When Verde was in the process of joining Accelerant as a Member, they had the opportunity to tender for a notable industry broker facility which checked the boxes for both Accelerant’s and Verde’s goals but was only available once every five years.

Timing was everything — and it wasn’t ideal.

Verde was still running the binder discussion with Accelerant at the time, concurrently with the broker facility deal. To secure both, Verde needed fast responses.

Accelerant understood the time sensitivity and poured in key people to ensure Verde could answer the facility’s questions, submit a tender, and position themselves as best possible.

Ultimately, Verde’s and Accelerant’s speed of response was successful, and Verde sits alongside global insurers on the facility, and Verde has the potential to secure a large portion of business as a result, with both agreements also going through with Accelerant.

Perspective on Industry Trends

Verde is paying close attention to evolving technology.

“The digital transformation is replacing human intelligence,” said James P. “It’s not just replacing human hands, but the way businesses are run.”

Moreover, Verde’s focus on ESG is a response to the shifting requirements for companies to disclose their climate impacts, financials, and other societal factors.

“We were in the Wild West with reporting requirements for a while,” said James P. “Eventually, consistency emerged across the globe in terms of accountability accounting standards and we expect the same for sustainability reporting.”

Still, for individual companies, their jurisdictions do things differently. By adopting global conventions and a handful of approved methods of monitoring, Verde is able to score ESG impact and help businesses hit the emerging 2050 climate targets.

A Blended Policy and Data Advantage

The biggest challenge for Verde is the increasing competitiveness in Management Liability. How can they make themselves unique in this space?

To differentiate, Verde has enhanced their blended policy. While other firms may only offer these products to small and medium-sized businesses, Verde can adopt theirs to underwrite and provide cover to businesses with a larger scope.

They’re also streamlining their underwriting approach by using technology which will allow them to partner with other Accelerant Members and enable them to use Verde’s experience and expertise for their existing client base.

Community Advice

When asked to share some advice with other Members, James R. suggested, “Try to push boundaries. Look outside of the norm and seek new opportunities. Always ask what Accelerant can do to help as they have a wealth of expertise on hand.”

James P. echoed this guidance: “Accelerant is always open to ideas. Yes, we’ve had ‘no’s’ on certain products that aren’t within their appetite, but if you don’t ask, you’ll never know.”

The two also emphasized the importance of perseverance. The insurance industry can be archaic at times, but new solutions are boundless.