Under Cover: How SES Risk Solutions Drives Innovation with Data

What makes an insurance innovator tick? In our latest Under Cover LinkedIn Live episode, INSTANDA’s Chief Technology Officer, Kevin Gaut, sat down with Shaun Shenouda, President of SES Risk Solutions, to explore just that. The conversation offered a fascinating look into the journey of a leader who incidentally found his way into insurance and went on to build a data-driven powerhouse in collaboration with an exceptional team. 

From starting in a mailroom to being on the leadership team of a company writing $200 million in premium, Shaun’s story is a testament to the power of curiosity, service, and strategic innovation. We’ll unpack the key moments from their discussion, covering everything from pioneering niche products to the philanthropic spirit that shapes the culture at SES Risk Solutions. 

From the Mailroom to the C-Suite 

Like many in the industry, Shaun Shenouda "fell into insurance." His career began at 16 in the mailroom of Countrywide Home Loans. It was a role that gave him a unique, ground-level view of the entire business. He didn't just deliver mail; he asked questions, learned about different departments, and built a network. Kevin noted how this early exposure reminded him of the importance of those "heartbeat" roles inside an organization. Agreeing with Kevin, Shaun shared how this early experience gave him an invaluable understanding of how a company truly functions. 

This foundation proved crucial as his career progressed. After Countrywide acquired an insurance company, Shaun moved into operations, technology, and analytics on the lender-placed insurance side. He graduated with a degree in management information systems just as the 2008 financial crisis hit, which put his entrepreneurial “ambitions on hold,” he recalled. Instead, he continued his path within the corporate structure, eventually landing an introduction that led him to SES Risk Solutions in 2014. 

At the time, SES was a small firm with 22 employees and about $25 million in premium. Today, it boasts 65 people and writes $200 million in premium—a journey Shaun describes as remarkable, driven by a desire to make a tangible impact. 

Innovating in a Niche Market 

Keen to dig a little deeper, Kevin asked Shaun to summarize SES Risk Solutions’ quite remarkable evolution in a traditionally tough market.  

Shaun shared how SES built its reputation by pioneering a niche product for financial institutions managing properties in home development trusts. They created proprietary technology to ease the administrative burden for banks, quickly becoming the market leader. However, the market was finite. To grow, SES expanded into the real estate investor market. 

Initially, they targeted large clients but found the space saturated. “The real opportunity,” Shaun shared, was in the mid-market—investors who owned more than 10 properties but fewer than 1,000. This segment, comprising around 300,000 investors, was dynamic and could benefit most from the SES technology platform. The "onesie-twosie" passive investors, numbering in the millions, were left untapped due to the challenges of servicing them efficiently at the time. 

The Turning Point: A Crusade for Data 

A series of wind and hail events in 2017 caused the company's loss ratio to tick upward. This became a catalyst for change. Shaun realized that underwriters, despite their immense talent and experience, couldn't possibly analyze all the external data points that influence risk. They understood weather patterns and local markets, but what about crime scores, median income, or vacancy rates among many other data points? 

This led SES on what Shaun calls a "data crusade." They brought on a data scientist and built a proprietary risk evaluation tool that augmented their underwriters' expertise. By integrating vast amounts of third-party data, they began to see clear correlations to losses. The results were immediate: underwriting performance improved significantly. 

This success gave them the confidence to pursue automation and gain additional carrier support. It was a virtuous cycle, better risk selection led to better results, which allowed for more investment in data, talent, and systems. This powerful data fabric became their competitive advantage. 

Kevin reflected on how the industry is witnessing a shift: data that was once the purview of back-office analysts now directly powers front-office decision-making. In the discussion, he pointed out that “you can’t run a successful insurance business today without deep understanding of the underlying data,” and SES is proof this.  

Partnering with INSTANDA to Reach the Masses 

With their sophisticated risk models and proven underwriting success, SES was finally ready to tackle the massive market of small, passive investors. The challenge was scalability. Their in-house technology was a powerful engine for managing dynamic portfolios, but it wasn't designed for a high-volume, B2C-style experience. 

This is where INSTANDA came in. In 2022, SES engaged with INSTANDA to build a new platform. Shaun highlighted the importance of INSTANDA's API enablement and ability to provide great customer experience. The goal wasn't to target 14 million individuals directly but to “leverage aggregation and strategic partnerships”. 

A key benefit of the INSTANDA platform, Shaun noted, is its agility. "It's real time," he shared with Kevin. "When I want to test a market on something, we can tweak a rate, tweak a deductible strategy, tweak eligibility, and we can see the net impact of that in real-time." This ability to test, learn, and adapt quickly is a game-changer compared to traditional underwriting cycles. 

A Culture That Makes a Difference 

The conversation also shed light on the values that drive SES. Shaun shared that the company’s mission is to be a "platform for difference makers," a philosophy that extends beyond the office walls. This culture is deeply influenced by co-owner Bill Mecklenburg, who introduced Shaun to the Covenant House Executive Sleep Out. For 11 years, Shaun has participated, joining other executives in sleeping on a parking lot with a cardboard box to raise funds and awareness for homeless youth. 

This commitment to community is embedded in the company. SES offers 40 hours of paid time off per year for community work and fosters an environment where employees are encouraged to share their charitable activities. This focus on making a positive impact, Shaun believes, is a key differentiator in attracting and retaining talent. It creates a workplace where people feel connected to a purpose larger than their day-to-day tasks. 

The Future for SES Risk Solutions 

Looking ahead, SES is focused on expanding its offerings. With a successor now leading the real estate investor division, Shaun is exploring complementary products and services. This includes moving into mid-term and short-term rentals, self-storage, and other property types. They’re also exploring adding coverages like property management liability, flood, and excess liability. 

The strategy is one of logical, linear expansion, building on their core strengths in data-driven underwriting and real estate. 

Missed the Episode? Catch the Replay 

Didn't tune in live? No problem. To hear the full story, including the worst career advice Shaun ever received and the recent Pinnacle Award SES received from Zurich, watch the complete episode of Under Cover. 

Stay tuned for more episodes of Under Cover, where we spotlight the leaders shaping the future of insurance. 

Curious about how INSTANDA can empower your organization to innovate and grow just like SES Risk Solutions? Get in touch with us today!