38New products/ MGA Lloyd’s Lab Impact Report 39 New products for new problems For the mentors, some of the learning was basic: Gaia began its 昀椀rst Lab session with anatomy and medical Cohort 6, 2021 workshops, taking the view that if an underwriter did not fully understand the menstrual cycle, they could not understand the Gaia data. Here it can clearly be seen how the Lab process allows underwriters the time and space to study new information and use it to analyse bigger picture ideas. As a result, all sides bene昀椀t. Sometimes the innovation teams that are put together by the Lloyd’s Lab Certainly Gaia’s experience was that are able to tackle some of the most basic human risk and pain points, such as the desire for a family. “ everyone came to us with open minds, and they came looking for innovation – that was Much insurance innovation has involved working on evolving product or distribution channels that exist already, but the Lab process draws in young start-ups with entirely new ideas, based on new datasets, and perfect for us.” which can solve di昀昀erent problems. The story of Gaia embodies this spirit. In the case of the Gaia, the known story was the cost and uncertainty involved in IVF treatment. Mentor teams worked with Gaia from four 昀椀rms across IVF is famously expensive to undertake, which makes the market, and ultimately by the end of the Lab, the the 昀椀nancial planning for couples who face the process product was close to being 昀椀nalised. Gaia moved demanding, exacerbated by the fact that they do not seamlessly from working with mentors in the Lab to know how many cycles of IVF they will have to fund. partnering with them commercially. Many couples have to wait to save up for second and third cycles, which also reduces the chances of For Gaia it was the people who made the whole success: age is an important success factor for the process work. treatment. Gaia’s founders had personally experienced the “The Lab gave us access to an amazing calibre uncertainties of IVF and wanted to create a way to insure against the risk of IVF failure. The team at Gaia of people for a period of two months – that built a model which could predict the chances of The product itself ultimately consisted of an access, dialogue and input was the most success during IVF, and which is able to suggest how insurance package, plus a 昀椀nancing module many cycles would be likely to be needed to achieve valuable thing.” While designing the product, Gaia’s 昀椀rst learn was that that success. an insurer must start with the worst-case scenario, whereas they had looked mainly towards the positive So much super昀椀cial innovation is focused on evolving Gaia had initially raised investor funding on the back of possibility of a new baby. There was a huge amount of product that exists already, or changing the their idea for an insurance product that would manage mutual learning on this point, underpinned by the distribution, but the Lab process draws in entirely new the cost of IVF through regular payment plans and standards of the UK’s TCF (‘Treating Customers Fairly’) ideas, based on new datasets, and so can solve would then pay out should the IVF process fail. 昀椀nancial services rules, because for insurers to work di昀昀erent problems. This is powerful, and ultimately However, to design a working product Gaia had to with customers in such a vulnerable personal situation Gaia’s way of bringing hope to families shows what can partner with an insurer. The Gaia team say that: it was critical to take enormous care to build a product be delivered by focusing on change, fresh thinking and shaped around careful treatment of possible clients. the power of ideas. The insurance mentors were able to help Gaia build a full conduct plan – a way to work with customers that took account of their situation, and which would not “ We joined the Lab to work with the mentors, take advantage of their hopes and vulnerabilities. Gaia were surprised: to transform our conviction about our consumer-facing idea into an insurance “ We thought the most important part would be product. We needed to learn how to make it pricing, but in fact it was conduct planning.” work in terms of shape, conduct and wordings. Through the Lab, we were able to make an insurance proof product, not just a consumer one.” © Lloyd’s