FAQ

Below are some common
questions from investors.

Basics

Isaac Re is the world’s only insurance-linked investment marketplace, where investors supply capital to insurance companies in exchange for underwriting profit. Here’s how it works:

  • We work closely with our insurance and reinsurance partners to structure and price insurance-linked investments called Notes.
  • Investors, ranging from individuals to institutions, select Notes in which to invest and earn quarterly returns linked to the underlying underwriting performance.

Isaac Re collects fees from both insurance companies and investors. We only collect fees from investors when they receive payments, so our revenue is directly tied to their cash flow.

As an investor, you will pay a 1% service fee on each payment received. If underwriting losses exceed a pre-specified threshold, the difference will be paid out of the investor principal but the service fee will not be charged.

Structuring Notes

We work closely with our insurance and reinsurance partners to identify opportunities to share underwriting experience with capital markets. Our partners choose Isaac Re because we offer cost efficiency and less hassle than traditional risk transfer vehicles. Securitizing through Isaac re offers an easy online application, great customer service and no hidden fees.

To evaluate the risk-return profile of a particular insurance event and calculate an appropriate coupon rate, proprietary models examine a variety of risk factors and apply state of the art actuarial techniques. The models also dynamically incorporate historical insurance experience on our marketplace.

The models are consistently refined and improved with the goal of maximizing risk adjusted returns for investors.

Investing Mechanics

When selecting Notes and building a portfolio, investors may consider information about the underwriting class, coverage type, term (12 to 60 months), as well as other factors.

Isaac Re does not offer investment advice. You should consult your financial advisor if you have any questions or need additional information.

No. Each Note is linked to a prespecified insurance event. Investors purchase Notes in increments and each Note entitles the investor to a portion of underwriting dividends. By purchasing many small Notes that correspond to different insurance events, you can diversify your portfolio and reduce the impact of any single adverse event.

An underwriting dividend represents premiums collected net of claims paid. Premiums are priced to reflect expected claims plus a risk margin reflecting the cost of insurance coverage. Under normal circumstances, the premiums collected are more than sufficient to cover claims and the excess is returned to investors via the dividend.

Under extraordinary circumstances claims in a certain period may exceed premiums collected in which case investor principal will be debited, but subject to a maximum of the original principal contribution.

Dividends are calculated and paid quarterly. Once these are distributed, they are available for investors to reinvest or withdraw at any time. The final dividend plus remaining principal are paid to the investor on the date the Note reaches maturity (12 to 60 months from the date of issue).

The solid returns, predictable cash flow, low volatility, and superior diversification of Isaac Re Notes come with less liquidity relative to other asset classes. Currently, our Notes mature 12 to 60 months from the date of issue, and investors should be prepared to hold any Note through its maturity. As payments of the underwriting dividend or principal are received, investors may withdraw available cash through an ACH transfer to their bank account.

At a later time, we will enable a trading platform that may provide additional liquidity in certain circumstances for investors prior to the maturity of the Note. The trading platform is a marketplace where investors may buy and sell Notes from one another.

You may withdraw available cash from your account at any time.

To move funds back to your bank account, click on ‘Withdraw Funds’ link in the dashboard to initiate an ACH transfer. A bank transfer initiated by 4pm EST M-F is typically posted to your bank account at the end of 3 full business days.

Claims Experience

Premiums are priced to reflect expected claims plus a risk margin reflecting the cost of insurance coverage. Under normal circumstances, the premiums collected are more than sufficient to cover claims and the excess is returned to investors via the dividend.

Under extraordinary circumstances claims in a certain period may exceed premiums collected in which case investor principal will be debited, but subject to a maximum of the original principal contribution.

Policies are evaluated and approved based on stringent underwriting criteria. However, actual claims experience may fluctuate in any given period. In the case where a favorable claims experience occurs, excess premiums are shared between our insurance partners and investors.