Lloyd’s to tackle emerging risks with new £53m innovation facility backed by 12 carriers
Lloyd’s of London has launched a new initiative with £53 million capacity to expedite product development for new and emerging risks in the re/insurance marketplace. The move is a part of John Neal's transformation strategy to prepare the market for the future.
A group of Lloyd’s underwriters from Tokio Marine Kiln, Beazley, MS Amlin, Talbot, Liberty Specialty Markets, Hiscox, Ascot, Chubb, Chaucer, Brit, Antares and Apollo have formed a product innovation facility that will develop new types of insurance for complex and non-standard risks, including intangible assets and supply chain risks, or mishaps caused by artificial intelligence.
The launch is aligned with ' The Future at Lloyd’s strategy' announced in May 2019 to build a new Lloyd’s market that will thrive in the future by providing greater value to its customers.
Lloyd’s said it is committed to nurturing a “safe space” for underwriters to experiment with new ideas in a controlled way, which balances the need for appropriate oversight with the risk of not innovating fast enough.
“Lloyd’s has a deserved reputation as the home of insurance innovation and I am delighted to see this initiative taking shape, which harnesses Lloyd’s unrivalled entrepreneurial spirit," said Lloyd’s CEO Neal. "In so doing The Product Innovation Facility aligns with our collective vision for the future of the world’s (re)insurance market. By incubating new product ideas and helping them to scale up over time, Lloyd’s will continue helping its customers to deal with rapidly evolving and emerging risks.”
According to Trevor Maynard, Lloyd’s head of innovation: “The Product Innovation Facility formalises underwriting at the centre of the Lloyd’s innovation ecosystem. Working closely with Lloyd’s innovation team the group has put forward this new concept of product development by agreeing to support one another’s initiatives with £53m of capacity in the first instance. The facility is still open to other market participants to join.”
The Association of Insurance and Risk Manager (AIRMIC) has welcomed the move, describing it as potentially groundbreaking. “This initiative has the potential to break new ground, and we applaud Lloyd’s not only for the breadth of what is being considered, but also the extent of collaboration between syndicates to achieve an ambitious but important goal," said Airmic’s deputy CEO and technical directo Julia Graham.
Thomas Hoad, head of innovation at Tokio Marine Kiln, said: “We are fully supportive of the Product Innovation Facility and we invite risk managers, brokers and other interested parties to contact and collaborate with it. By accessing the best ideas and data from the Lloyd’s market, the group will bring forward new solutions for nascent risks, in direct answer to clients’ evolving needs.”
Tina Kirby, head of innovation & product development at Beazley, added: “The Lloyd’s market has always been at the forefront of innovation and syndicates work on new solutions for their clients daily. This initiative is to promote and facilitate collaborative innovation where non-standard risks might require different thinking and expertise.”
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Brit adopts GIC aerial imagery to manage catastrophe claims in real-time
Brexit report says £4b costs for financial services ‘a drop in the ocean’
Insurtech start-up Qover secures €8m funds for European expansion
Insurtech Blocksure bolsters management team with industry experts
Federation of European Risk Management Associations picks new president
