Redline deploys RiskOps to secure coverage from Lloyd’s and compete in Latin America

Redline is a reinsurance MGA based in Miami and Mexico City, serving SMB insurers in Latin America. Juan Salazar, Managing Director at Redline, founded the company with the intention to use cutting-edge technology and world-class coverage to drive more competition in the Latin American insurance industry. Redline chose Federato to power their underwriting operations for several reasons: the platform could support the entire underwriting workflow, consolidate all their disparate data into a single pane of glass, and leverage AI to improve underwriting performance.

“Our core business strategy is to use the best technology available in order to achieve the efficiency necessary to serve our market. Federato has provided the core system to power that strategy, not only as the platform for our underwriting operations, but as the AI engine to accelerate our work, and as the central source of truth for our data.” Juan Salazar, Managing Director, Redline

The Challenge

The Latin American market contains many countries, each with its own currencies, compliance requirements, and data formats. In Costa Rica, for example, an official address may read, “the blue house 50 meters from the intersection”, which is difficult to integrate with address- or coordinate-based location data. Historically, this has impacted the availability of reinsurance for SMB insurers in the region; for many reinsurers, the smaller premiums available from SMB insurers haven’t been worth the cost required to process the inconsistent data. 

To accomplish their mission to bring world-class coverage to the SMB Latin American reinsurance market, Redline needed to make it easier for underwriters to write risks. They needed to simplify the ingestion of data from a submission so underwriters could write more deals, and they needed to preserve and manage data from the entire workflow in order to comply with the data governance requirements of a world-class capacity provider.

“We can write an account very quickly if we have all the information necessary to understand it. Federato gives us the ability to do that. The way we can use AI now to ingest and cleanse data brings the time it takes us to make a decision on a risk down from hours to just minutes.” Alfonso Baca, Data Scientist, Redline

The Solution

After a thorough search of the underwriting technology landscape, Redline decided to build out their underwriting operation on Federato’s RiskOps platform. 

Federato’s submission ingestion capabilities allow Redline’s underwriters to quickly and easily process a risk as soon as it comes in, formatting the data and identifying the traits that make a submission a good candidate for their business. Their entire underwriting workflow from submission to bind is contained in Federato, allowing them to power an AI model that will triage new submissions based on their own data from the complete lifecycle of a risk. Federato’s robust documentation engine simplifies the administrative overhead required of underwriters to complete a deal by automatically passing data between each phase of the process. And out-of-the-box analytics enable Redline to easily satisfy reporting requirements for capacity providers.

Federato gives us the ability to scale up the amount of submissions we can review and the speed with which we can bind them, because underwriters are spending more time actually reviewing risks and making decisions instead of cleansing data, going through large data sets, trying to pull out the right data fields, going through survey reports, and everything else that needs to be done to a submission before we can actually understand it.” - Adriana Cisneros, Head of Underwriting, Redline

The Result

With Federato, Redline has shortened the time it takes to underwrite a risk from hours down to minutes, making it possible to write more risks overall. After building out their underwriting process on the RiskOps platform, Redline sought coverage from Lloyd’s of London. As part of capacity discussions, they demonstrated their underwriting strategy within the Federato platform, including their submission workflow and data governance capabilities, and successfully secured the coverage they sought. Redline began writing business on Federato as a Lloyd’s coverholder in fall 2024.

“Federato’s ability to process and preserve data from the entire underwriting process makes it extremely easy for us to meet our compliance requirements and show our capacity providers that we have great governance. During our conversations with Lloyd’s, we got into Federato’s platform and showed them our workflow from end to end for each of our business lines, and that was a key part of the conversation.” - Juan Salazar, Managing Director, Redline