Brit to launch first algorithmically driven Lloyd’s syndicate to transform traditional marketplace
Specialty re/insurer Brit has collaborated with Google Cloud to launch a digital algorithmically-driven Lloyd’s of London syndicate, called Ki, which it says will "transform the London insurance market".
Ki, which is launching in 2021, aims to significantly reduce the amount of time and effort taken for brokers to place their follow capacity, creating greater efficiency, responsiveness and competitiveness.
Ki’s algorithm will be able to evaluate Lloyd’s policies and will automatically quote for business through a digital platform which brokers can access directly. Ki will follow several ‘nominated’ lead syndicates across the Lloyd’s market, including Brit.
Ki offers brokers a line on every risk in the selected classes led by these markets.
Brit believes Ki will "redefine the commercial insurance market" as a ‘follow-only’ syndicate.
James Birch, head of innovation at Brit, and the Brit Innovation team have led the incubation of Ki. It will be run by a team reporting to Mark Allan, group CFO at Brit, who will act as executive chair. The business will be backed by Brit, Fairfax and other private capital investors.
Matthew Wilson, CEO of Brit, said: “Ki is a significant milestone for our market, combining Brit’s heritage of underwriting outperformance and Google Cloud’s technology expertise. Over time, Ki will look to play a central role in the transformation of the specialist insurance market in London, creating a whole new and fully digital segment which operates seamlessly alongside the traditional marketplace.
"Recent events have demonstrated the importance of electronic trading and I expect Ki to be at the forefront of the accelerated transition in how the Lloyd’s market transacts business. Through building a truly quantitative-based approach to insurance, Ki aims to do what quantitative hedge funds did to Capital Markets in the 1990s.”
Adrian Poole, head of financial services, Google Cloud said: “We are proud to be the cloud provider for Ki, and to collaborate with Brit to transform the London insurance market. As the first algorithmic syndicate, we see this as an exciting first step by Brit to support the Future at Lloyd’s vision and are delighted to bring our market-leading technologies to support this innovative venture.”
John Neal, Lloyd’s of London CEO said: “Ki truly embraces all that is represented in 'The Future at Lloyd’s' by bringing data, technology, innovation and artificial intelligence to the fore in the complex world of corporate and specialty underwriting. It is an exciting first for Lloyd’s and paves the way for others to follow.”
