Insurance and reinsurance marketplace Lloyd’s of London has launched a new initiative to speed up re/insurance product development for complex and non-standard risks, called The Product Innovation Facility.
The solution was led by senior underwriters Tokio Marine Kiln, Beazley, MS Amlin, Talbot, Liberty Specialty Markets, Hiscox, Ascot, Chubb, Chaucer, Brit, Antares and Apollo.
Lloyd’s said the Facility will look to develop re/insurance products for intangible assets and supply chain risks, as well as mishaps caused by artificial intelligence.
It added that the launch is aligned with the new Future at Lloyd’s strategy, which aims to promote more efficiency and innovation in the marketplace.
The Product Innovation Facility also supports Lloyd’s commitment to developing a ‘safe space’ for underwriters to experiment with new ideas in a controlled way, balancing the need for appropriate oversight with the risk of not progressing 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 John Neal.
“In so doing The Product Innovation Facility aligns with our collective vision for the future of the world’s (re)insurance market,” he explained. “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.”
“The Product Innovation Facility formalises underwriting at the centre of the Lloyd’s innovation ecosystem,” added Trevor Maynard, Lloyd’s Head of Innovation. “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.”
Thomas Hoad, Head of Innovation at Tokio Marine Kiln, also commented: “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.”
Finally, Tina Kirby, Head of Innovation & Product Development at Beazley, stated: “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.”