Lloyd’s and six market syndicates will begin using Parsyl, a supply chain data startup, to better manage risk for temperature sensitive classes of business.
The syndicates participating in the initiative are AXA, QBE, CNA Hardy, Ascot, Antares and Beazley.
Parsyl is a venture-backed supply chain data platform that helps shippers, retailers and insurers understand the quality conditions of sensitive and perishable products as they move through the supply chain.
The Lloyd’s initiative aims to offer crafted risk coverage for sensitive shipments that incorporate the use of Parsyl’s Internet of Things (IoT) quality assurance and risk management solution. It is designed for products that require specialist transport and storage, such as temperature-controlled foods, biological pharmaceuticals and sensitive life science and high-tech products. By agreeing to place Parsyl’s sensors on prescribed shipments, participants may benefit from expedited settlement and reduced claims costs, tailored deductibles and risk mitigation insights based on new data.
The $16 billion marine cargo market has been unprofitable for years, with rising loss and expense ratios leading to market wide reforms. Coverage remains largely undifferentiated due to a lack of agility in the underwriting process, yet new sources of data and information are allowing insurers to reshape how they understand risk.
“As a market, it is imperative that we embrace new technology solutions that can lower costs and improve risk selection,” said Trevor Maynard, Head of Innovation at Lloyd’s. “We created Lloyd’s Lab to pursue innovative, technology driven solutions like Parsyl that can address the unique and rapidly changing demands of the Lloyd’s market, and are proud to be announcing this initiative as an outcome of the program.”
In December 2018 the Lloyd’s Lab launched a new global search for the next cohort of insurtech innovators.
The programme targets entrepreneurs and startups able to develop products, platforms and processes that offer technology driven solutions to some of the challenges faced by Lloyd’s. The accelerator’s first cohort programme started last October.
The syndicates participating in the Parsyl initiative all lead a substantial portion of the global marine cargo business that is underwritten at Lloyd’s. The initiative also has the support of AXA XL and QBE, two of the largest marine cargo syndicates at Lloyd’s.
“We know that our future success and that of our clients is driven by our ability to find new ways to improve the claims process and better manage risk,” said Andrew Brooks, CEO of Ascot Group. “By partnering with Parsyl, we’re able to greatly enhance our offering with sophisticated and predictive data analytics,” Brooks added.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Lloyd's, AXA, QBE, CNA Hardy, Ascot, Antares and Beazley, Insurtech, Partnership, London Market, Europe