The specialist Lloyd’s re/insurance marketplace has granted ‘in principle’ approval for the launch of Flux syndicate 1985 that will commence underwriting at the beginning of next year.
The news was announced in a joint statement from third-party managing agent Asta and the firm Acrisure. It said that Flux is expected to generate gross written premiums of £106.7m in 2023, of which 70% is new to Lloyd’s.
Grahame Millwater, president of global insurance at Acrisure, said: “The global insurance market is experiencing a growing convergence between underwriting, distribution, and capital. The Flux syndicate offers investors access to high-quality risk from multiple sources via the most direct route possible.”
He added: “We looked at Lloyd’s efforts to make the market more accessible, and easy to use, and we like what we have seen. With the help of Asta, we’ve created a leading-edge business model which will harness those facilities to the benefit of everyone in the chain, from the insured customer all the way to the ultimate capital provider.”
Asta and Acrisure said that the Flux low-touch underwriting model will take the best Lloyd’s products to new buyers through Acrisure’s tech-driven retail distribution systems, while expanding consortia opportunities for other Lloyd’s syndicates by easing access to the Acrisure retail network.
Lorraine Harfitt, CEO of Asta, said: “The Flux opportunity has considerable potential to attract accretive business into Lloyd’s. Of about $32bn in premium currently managed by Acrisure, only about $400m currently flows into Lloyd’s. The launch of Flux stands to increase that ratio dramatically and bring a large volume of new risk and premium into the market.”
She added: “It will accrue not just to Flux, but to other syndicates as well and will also provide additional opportunities for third-party capital. We’re proud to provide third party syndicate management to this exciting venture, which constitutes a ringing endorsement of Lloyd’s initiatives to make the market more attractive to high-quality, low-expense, entrepreneurial insurance players seeking an efficient platform for growth.”
