Beazley renews AI-enabled reputational risk consortium at Lloyd’s
Specialist insurer Beazley has renewed its Custodian Consortium at Lloyd’s that provides reputational risk coverage for clients throughout the lifespan of a crisis.
The Beazley-led consortium was launched in 2019 in partnership with other Lloyd’s insurers including RenaissanceRe, Tokio Marine Kiln, Chaucer and Talbot.
The company stated that it has enhanced its reputational risk insurance policy using artificial intelligence-enabled tools to provide better insights to policyholders.
The policy is designed for consumer-facing companies across a range of industries including leisure, hospitality, technology, manufacturing, transportation and healthcare. Coverage includes crisis management services to minimise reputational damage, and business interruption cover that insures against the impact to profitability of a downturn in revenue.
Additionally, the solution will now include a subscription to reputational, economic, social & governance (ESG) and risk intelligence provider, Polecat Intelligence, which uses online and social data to assess an organisation’s reputational profile and performance globally, benchmarking these against competitors and peers.
The platform allows companies to scan the horizon in real time for potential threats to their reputation and enables an intelligence-led approach to responding to reputational crises, ESG issues and stakeholder perception.
George Beattie, head of incubation underwriting at Beazley, explained how the solution helps companies in two key ways. “Firstly, it provides executives with reputational insights at a time when many companies are the target of stakeholder action relating to perceived failures to act on emerging risks. Secondly, it helps companies to mitigate the risk to profitability posed by reputational crises by paying for loss of profit and providing immediate access to crisis consultancy services.”
Trevor Maynard, Lloyd’s head of innovation, said: “Reputational risk is a fast-evolving issue, and a growing priority for many businesses around the world. We launched the Lloyd’s Product Innovation Facility to support new, innovative and brave products such as this reputational risk policy and I’m thrilled to see such fantastic risk sharing collaboration in our market. By forming partnerships with our peers and Polecat, we’re able to use a blend of AI, benchmarking and industry intelligence to proactively support our customers in protecting their reputation.”
James Lawn, co-CEO of Polecat Intelligence, added: “Global companies and their executives are experiencing significantly more scrutiny over their conduct and risk management through both social media and growing social activism. Organisations that seek to actively manage their reputations and ESG profiles by harnessing data and market intelligence are more strongly positioned to anticipate and manage emerging threats. Access to the Polecat platform gives Beazley Reputational Risk policyholders more control over managing and appraising their corporate reputations, benchmarking objectively against their peers, and understanding the material implications of what their stakeholders are saying.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
