Howden Ventures has secured an impressive £500m in insurance coverage, thanks to the backing of key industry players like Tokio Marine Kiln, Chaucer, and Liberty Specialty Markets.
The funding raised by Howden Ventures is earmarked for transforming technology start-ups, such as CetoAI, into miniature underwriters. For instance, CetoAI plans to integrate live data analytics services for ships with insurance policies covering the vessels. This initiative aims to foster innovative solutions in specialty lines of insurance, to a new report by the Financial Times.
The substantial coverage has been underwritten through Howden’s underwriting arm, Dual, which is supporting a diverse range of risks with its insurance coverage. This marks a unique and comprehensive approach, signifying a groundbreaking level of delegation within the Lloyd’s insurance realm. The primary goal of this venture is to empower technology start-ups to become managing general agents (MGAs) with the authority to underwrite on behalf of insurers.
Howden Ventures aspires to bridge the gap between established insurers and innovative insurtechs. The delegated underwriting models, which separate insurance risk holders from policy signatories, have faced challenges in the past. However, Howden’s platform incorporates multiple safeguards, including exposure limits and governance checks.
In an effort to address the slow introduction of new insurance products in London, Howden aims to create an “open” platform for collaboration, allowing entrepreneurs with innovative ideas to bring their solutions to market more swiftly.
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