Kalshi is pushing deeper into sports insurance and reinsurance through a new partnership with sports insurance broker Game Point Capital. CEO Tarek Mansour said the market is worth about $9 billion a year today and is expected to double by 2030.
The focus is a segment that covers sponsorship guarantees, game cancellations, player compensation structures and performance-triggered bonus payouts. Game Point Capital places hundreds of millions of dollars in sports insurance annually. One of its busiest products is bonus insurance tied to team and player performance, which protects against large payouts linked to milestones such as playoff berths, championships or statistical targets.
Basketball bonus hedges priced below OTC reinsurance
Last week, Game Point executed two basketball-related performance bonus hedges on Kalshi’s exchange. One contract, tied to a team making the postseason, was priced at 6% on Kalshi, compared with roughly 12% to 13% in the over-the-counter reinsurance market.
A second hedge linked to advancing to the second round was priced at 2% on Kalshi, versus about 7% to 8% OTC. That pricing gap is central to Kalshi’s pitch.
Exchange model targets the role held by traditional reinsurers
Under the standard structure, insurers looking to shed risk usually negotiate directly with reinsurance providers such as Lloyd’s of London. These OTC deals tend to rely on bilateral negotiation, offer limited transparency and often come with higher pricing, especially on volatile or higher-risk contracts.
Mansour said an exchange can widen liquidity and let multiple counterparties bid in an open market, improving price discovery while cutting costs. Kalshi is presenting its platform as a lower-cost, more transparent venue for risk transfer that has long been handled by traditional reinsurance channels.
He also said that during the recent Super Bowl, Kalshi could have processed a $22 million trade without materially moving market prices. With that level of depth, the company expects to handle tens of millions of dollars in similar hedging transactions from Game Point in the coming months.