Lloyd’s of London, the insurance and reinsurance market in the UK, announced that a group of its underwriters have launched a product innovation facility to “insure the uninsurable” by combining underwriting and innovation.
Known as the Product Innovation Facility, the new initiative with £53m of capacity will accelerate the development of (re)insurance product for new and emerging risks.
The solution will be led by senior underwriters from Tokio Marine Kiln, Beazley, MS Amlin, Talbot, Liberty Specialty Markets, Hiscox, Ascot, Chubb, Chaucer, Brit, Antares and Apollo.
The industry partners will test new types of insurance for complex and non-standard risks, such as intangible assets and supply chain risks, or mishaps caused by artificial intelligence.
Lloyd’s CEO John Neal said: “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.”
Lloyd’s head of innovation Trevor Maynard said: “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.”