Lloyd’s underwriters including Chubb, Chaucer, Beazley and Hiscox are teaming up on a new initiative designed to quicken insurance/reinsurance product development for new and emerging risks.
Known as The Product Innovation Facility, the effort will include £53m ($62.3 million) of capacity.
Tokio Marine Kiln, MS Amlin, Talbot, Liberty Specialty Markets, Ascot, Brit, Antares and Apollo are also involved. The group will test new types of insurance for complex and nonstandard risks, including but not limited to intangible assets and supply chain risks or mishaps caused by artificial intelligence.
In the announcement, Lloyd said the effort reflects its commitment 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 said the facility is aligned with its Future at Lloyd’s strategy, which is building a new Lloyd’s market designed to thrive in the future by providing even greater value to its customers.
Jon Hancock, Lloyd’s Performance Management director, said The Product Innovation Facility dovetails with Lloyd’s collective vision for the global insurance/reinsurance 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,” Hancock said.
Trevor Maynard, Lloyd’s head of Innovation, said that other market participants can still join the initiative.
Source: Lloyd’s of London