Chairman of the Board & Chief Executive Officer, Kinsale Capital
Search every verified Michael Kehoe interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. At the 30th Annual Baron Investment Conference in September 2024, Michael Kehoe discussed Kinsale Capital's strategy of insuring high-risk businesses that other insurers avoid, operating in the excess and surplus lines market. He stated that the company maintains control over underwriting and claims management, and described technology as a core competency, with about 120 IT professionals focused on innovation and automation. Kehoe said the company's quantitative approach showed that faster quoting increases the probability of binding an order, leading to a more aggressive quoting process. Kehoe attributed rising insurance rates to increasing loss costs from the state-based tort system, inflation, and natural catastrophes such as hurricanes and wildfires. He noted that AI is being experimented with in product development and underwriting but also poses network security risks like deepfake fraud. Regarding homeowners in high-risk areas like Florida, Kehoe said that dramatically higher insurance costs and stricter building codes can push some out of the market, though insurance remains available.
“Kinsale insures businesses that other insurance companies don't want to handle, focusing on high-risk, high-hazard accounts that standard companies typically avoid.”
“We operate in the excess and surplus lines market, which allows us freedom of rate and form, meaning we can charge what the market will bear and adjust coverage on a case-by-case basis.”
“We maintain control over underwriting and claims management, which is a competitive advantage because many competitors outsource small account underwriting, leading to misalignment of interests and inaccurate risk classification.”
“Technology is a core competency for Kinsale; we have about 120 IT professionals focused on innovating and automating processes, which provides a powerful competitive advantage over legacy systems used by many insurers.”
“Our quantitative approach showed that the quicker we offer brokers terms, the higher the probability of binding the order, which led us to change our quoting process to be faster and more aggressive.”
“The insurance industry is experiencing rising rates primarily due to increasing loss costs driven by a state-based tort system, inflation, and a rise in natural catastrophes like hurricanes and wildfires.”
“AI and artificial intelligence are being experimented with in product development and underwriting, but they also pose network security risks such as deepfake videos used for fraud.”
“Kinsale manages capital carefully to satisfy state regulators and AM Best rating agency, maintaining just enough capital to protect policyholders without excess, which contributes to its higher price-to-book ratio compared to peers.”
“Homeowners in high-risk areas like Florida face dramatically higher insurance costs due to increased natural catastrophe exposure and stricter building codes, which can push some out of the market despite the availability of insurance.”
Michael Kehoe, Chief Executive Officer and President of Kinsale Capital Group, Inc. speaks at the 30th Annual Baron Investment ...
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