Lloyd’s approves Asta's Picnic syndicate-in-a-box to write mutual risks
The Council of Lloyd’s has granted in principle approval for the launch of mutual risks-focused Picnic Syndicate 2460, a syndicate-in-a-box (SIAB) which will commence underwriting on January 1, 2021.
Picnic will initially provide re/insurance support to the innovative mutuals that its parent Picnic Labs forms and develops in Australia and New Zealand.
The syndicate will first focus on short-tail lines underwritten through pro-rata and excess of loss re/insurance, avoiding peak peril zones.
Gross written premium of £19.2 million is forecast for the first year of operation from business which is new to Lloyd’s.
Asta will be Picnic’s independent Lloyd’s managing agent partner, providing full third party management including underwriting oversight, actuarial, risk management, regulatory compliance and governance services.
Julian Tighe, chief executive officer of Asta, said: “Picnic has a superb, innovative insurance model, and we’re proud to be involved with our second SIAB following the launch of Carbon syndicate 4747. We’ve helped Picnic Labs realise the essential central re/insurance part of their business vision by providing not only the platform, but by helping them source capital and talent for SIAB 2460.
"Both Lloyd’s and Asta viewed Picnic as an ideal SIAB candidate, and I’m delighted we have been able to work together with Picnic to deliver this major step forwards. It is the sort of dynamic business which will benefit Lloyd’s enormously as it reforms and looks to the future.”
Picnic is the brainchild of Australia’s Picnic Labs, which has developed and launched a new type of mutual. The syndicate will re/insure Picnic Lab’s Our Ark Mutual. Other open-market mutual risks will be assumed by Picnic at Lloyd’s to add diversification.
Charles Pollack, chief executive of Picnic Labs, said: “We’re excited to be working with Asta, who were instrumental in getting us over the line at Lloyd’s. We believe the Picnic model for mutuals is the way of the future and that the strength and flexibility of the Lloyd’s platform, through the SIAB model, is key to making it into a reality for our member insureds the world over.”
