66 67 Lloyd’s Lab Impact Report 67 P A A new insurance ecosystem r lum Cohort 3, 2019 o ce Sharing data and insights is something that individual insurers are unable to do unless an impartial industry group, such as Lloyd’s, facilitates a s n ‘protected space’ for them to do this in. It rarely happens without this encouragement, even though the bene昀椀ts for the market of pooling s i op c modelling data for complex risks could be huge – allowing better pricing, which bene昀椀ts both clients and insurers. a So, in the case of industry start-up, Hyperexponential, “Lloyd’s went above and beyond to help the role of the innovation team in the Lloyd’s Lab was t s not primarily to help educate the team about insurance make introductions for us to stakeholders – in fact the HX team already had some experience i e within the London market – but to bring together across the Lloyd’s landscape.” mi di昀昀erent 昀椀rms and make it possible for them to share HX information and see the bene昀椀ts of the results. In this a example the aim was to allow pricing teams to share live data while modelling new risks, especially those in s n the specialty markets. HX were also helped by the Lab to bring together the The idea was focused on the pre-contract pricing work network of specialists who might collaborate within a d that must be done for each risk before it is their product during their two-month project. They in underwritten. Traditionally a company actuary built fact set up a best-practice market pricing group in t their own company-speci昀椀c pricing model in Excel to partnership with the LMA and Lloyd’s, and this ion p price a new risk. However, the system that was collaboration forum for senior actuaries continues to developed through the Lab allows pricing to be done meet. HX were enthusiastic about the role that the Lab collaboratively in a shared system. played in making the cross-market partnerships they oi It was a brave move in a market where modelling and needed a reality. pricing intelligence has traditionally been jealously The Lab’s ability to connect them with new partners guarded, but the HX team had an idea that chimed and support their innovation helped to turbo-charge closely with Lloyd’s own ambitions for data sharing Hyperexponential’s visibility and usage, and their n among managing agents and insurers. platform is now used across the market. While in the Lab three mentors provided input and data. t Beazley and Atrium helped with the building of the proof of concept model, while Navigators provided an IT mentor. The HX team found that their time in the Lab “had a huge impact on our relationship with the market through the networks that we built up”. They found that the programme gave them much-needed insight into what would be most valued by clients, as well as how important ease of integration would be to pricing. It turned out that, even experienced in-market teams can learn more about the insurance ecosystem when paired with new teams in an innovation space. © Lloyd’s