Stable, the pioneering fintech company with a commodity price-risk management platform, has established a Bermudian-domiciled Class 3A insurer.

The company had previously established a collateralised insurer on the island.

Artemis, a specialty website, reported that Stable has set up a Class 3A insurer, capitalised to have more than 200 per cent capital adequacy and with Solvency II equivalence.

Artemis owner and editor-in-chief Steve Evans writes that this commercial insurance platform will help Stable retain more of its underwriting, so even more closely aligning it with the risk capital providers it works with, while also giving it the ability to write insurance business. It now aims to expand its parametric remit beyond the commodity sectors it has focused on to date.

Stable operates across more than 300 hedging markets, offering simple parametric contracts backed by A-rated reinsurers with a customer base typically of manufacturers and producers that want a programmatic insurance-like solution to smooth their income, managing costs in their supply chain, Artemis said.

Richard Counsell, chief executive officer of Stable, told Artemis: “My goal is to build Stable into the largest parametric insurer in the world with a broad range of products across all commercial sectors.

“With our agricultural client base growing rapidly and profitably, we’re delighted to be able to launch protection programmes for a wide range of industries beyond agriculture.

“With three years of successful underwriting experience and modelling under our belt and an immensely supportive panel of risk capital, now is the time to broaden our business into the energy, fertiliser and packaging sectors, which are also contiguous areas of uncertainty for our existing client base.”