Markets/Coverages: Arden’s Parametric Wildfire Risk Program Backed by SiriusPoint

Brokers in western states take note: there is new help for wildfire risks.

Specialty re/insurer SiriusPoint Ltd. is offering capacity to managing general underwriter Arden Insurance Services LLC for a wildfire exposed risks program that includes embedded parametric coverage. Arden’s new Consolidated Fire Insurance Policy (CFIP) will initially be offered in California with eventual expansion into other wildfire exposed states. The policy offers coverage alongside Arden’s existing all-risk offering.

Arden specializes in coverages for multi-family habitation risks with an in-force portfolio of more than 120,000 buildings insured. This class of business has been particularly affected by the market’s decision to eliminate or severely sub-limit wildfire coverage in all-risk policies in the regions west of the Rockies, where Arden operates.

“The recent Los Angeles wildfires further exacerbated the insurability crisis for properties located in wildfire exposed areas and CFIP provides comprehensive coverage for this underserved market,” said Brian Cohen, Arden Insurance Services CEO and co-founder.

Cohen said brokers in the western U.S. have been asking for a solution to provide peace of mind in a distressed market.

“We’re proud to become a capacity partner to Arden, working together to meet critical market needs with a program that is both creative and impactful,” said Patrick Charles, head of North America Insurance at SiriusPoint.

Charles called Arden’s program strategy “thoughtful” in filling a vital gap in an underserved segment. “This partnership not only supports the insurance ecosystem but also contributes to the broader economic resilience of California,” he said.

Based in California, high-tech enabled Arden currently operates in the 11 states of Arizona, California, Idaho, Illinois, Michigan, Nevada, Ohio, Oregon, Utah, Washington, and Wisconsin with plans to expand into additional states.

Bermuda-based Sirius operates globally and has $2.7 billion total capital.

Andrew Matson, CEO of Augment Risk, which facilitated the capacity deal between SiriusPoint and Arden, said the Consolidated Fire Insurance Program offers an “efficient, streamlined approach to wildfire insurance” and “highlights how innovative capital structuring can accelerate the delivery of new risk transfer solutions.”

Topics Catastrophe Natural Disasters Wildfire