New Underwriter Targets US Mobility with Data

Rokstone Velocity is entering a US commercial auto market that has been unprofitable for 14 consecutive years, posting a $4.9 billion loss in 2024. This new division is a direct response to a widening capacity gap, as other insurers reduce their maximum deployed limits in the face of rising claim severity and litigation costs. The venture is led by Head of Rokstone Velocity, Andrew Cooper, a 23-year Aon veteran who previously served as managing director of innovation and technology at Pantheon. He is joined by Senior Underwriter Matt Higgins, who comes from Apollo's iBott platform, signaling a focus on tech-driven underwriting talent. The target "emerging mobility" market is substantial, with the global sharing economy projected to hit $454 billion this year and transportation making up 45% of that. Furthermore, insurance premiums for autonomous, connected, and electric vehicles are forecasted to grow eightfold to $0.57 trillion by 2030. A key challenge Rokstone Velocity will confront is "social inflation," which is driving claim severity up by an average of 8% annually, more than double the economic inflation rate. This is compounded by a 52% jump in "nuclear verdicts"—jury awards over $10 million—against corporate defendants in 2024, with commercial auto being the epicenter. To counter this, the firm will utilize its proprietary technology ecosystem, ATOMX, to enhance data capture and convert unstructured loss information into actionable underwriting insights. This technology is designed to improve modeling, pricing accuracy, and loss ratio forecasting from the start. Rokstone Velocity will offer specialized products like embedded insurance for digital platforms, usage-based auto liability, and casualty facilities for mobility operators. This includes crafting bespoke policy wordings for motor liability, general liability, and hybrid structures to meet the evolving needs of the market. The operation is backed by two dedicated underwriting facilities: one from Lloyd's of London and another from an A-rated company market carrier. This dual support provides stable, long-term capacity, enabling Rokstone Velocity to act as a lead market on complex programs. This launch is part of a broader expansion by Rokstone, a $1.1 billion Gross Written Premium (GWP) MGA, which has recently been adding new divisions and leadership in areas like US Excess Casualty and Sports & Leisure, signaling an aggressive growth strategy in specialized US markets.