A group of Lloyd’s of London underwriters is aiming to speed up insurance and reinsurance product development for new and emerging risks.
The Product Innovation Facility, launched with £53 million of capacity, is being led by senior underwriters from Tokio Marine Kiln, Beazley, MS Amlin, Talbot, Liberty Specialty Markets, Hiscox, Ascot, Chubb, Chaucer, Brit, Antares and Apollo.
They will trial new types of insurance for complex and non-standard risks, including intangible assets and supply chain risks, or “mishaps caused by artificial intelligence”.
Lloyd’s is providing 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”.
The facility is aligned with The Future at Lloyd’s strategy.
John Neal, chief executive officer at Lloyd’s, said: “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.”
“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.”
Trevor Maynard, head of innovation at Lloyd’s, added: “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 £53 million of capacity in the first instance. The facility is still open to other market participants to join.”
Thomas Hoad, head of innovation at Tokio Marine Kiln, urged risk managers, brokers and other interested parties to get involved.
He said: “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 and product development at Beazley, concluded: “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.”