20 Lloyd’s Lab Impact Report 21 Investing in innovation is the Risk scoring AVs with Simulytic Driving success with innovation In another of its ventures in the autonomy space, For Apollo, the winning approach to innovation is an key to bridging the risk gap Apollo has entered into early-stage discussions with open-door policy – engaging clients in a conversation Siemens-backed tech venture Simulytic. so the partners can innovate together on tailored insurance products. A graduate of Lloyd’s Lab cohort 10, Simulytic uses simulation autonomous vehicle (AV) behaviour in As Shimin Lu, Pricing Actuary at Apollo ibott 1971, As a specialist (re)insurance business, Apollo has long focused on speci昀椀c conditions and in interaction with other road notes, when creating innovative insurance products, users, to understand the AV’s risk exposure. The loss data is often unavailable, which means Apollo innovation. In April this year, the company made a signi昀椀cant investment in output data from the simulation is then used to model must make high-level assumptions based on what it innovation with the creation of its ICX consortium, with the aim of collision risk. can learn about a client’s risks, then re昀椀ne and validate those assumptions over time. The key to success is deploying meaningful lead capacity through its Apollo ibott 1971 syndicate. From mentoring Simulytic during cohort 10, Apollo is collaborating with clients directly on data collection. now working with the company to explore the possibility of a pilot scheme to develop risk scoring Apollo’s data-driven approach to innovation not only However, as Hayley Budd, Class Leader for Innovation Tapping into autonomy with Oxa for AVs, pairing Apollo’s data on autonomous vehicles reduces the high acquisition and operating costs at ibott 1971, emphasises, the key to Apollo’s approach with Simulytic’s modelling to develop bespoke associated with traditional insurance business, but Apollo’s involvement with Oxa – a leading producer of to innovation is collaboration. insurance solutions. also drives greater speed to market for the 昀椀rm and autonomous vehicle software – has opened the door its partners.innovation we're doing in terms of new to a highly signi昀椀cant insurance opportunity. In her view, insurers cannot innovate with underwriting products, we leverage that ICX code.” alone. The ibott team features more actuaries and data scientists than underwriters, because the 昀椀rm Rebecca Marsden, Vice President of Risk and Partnering on parametrics Insurance at Oxa, says innovative companies typically recognises the importance of data when innovating in face challenges in 昀椀nding 昀椀t-for-purpose insurance Parametrix is an MGA and Lloyd’s coverholder which the new product space. solutions, including a lack of historical risk data, provides parametric insurance against outages of the unique risk pro昀椀les that insurers may be unfamiliar cloud, content delivery networks, and e-commerce “ By partnering with innovative insurers like In addition, the ibott syndicate is focused on with, rapidly evolving business models, and a lack of platforms. collaborating with clients to design insurance products Apollo, within Lloyd's of London, Oxa is able regulatory clarity around potential liabilities. that meet their needs, and successfully plug the The company 昀椀nalised development of its SME to access the creativity and agile design- insurance gap in untapped or under-served markets. Marsden says collaboration with specialist insurers is insurance product during cohort 4 of the Lloyd’s Lab in thinking that is critical for co-creating a at the core of Oxa's go-to-market strategy, to ensure 2020 and has since partnered with Apollo on a line- Alongside involvement in the Lloyd’s Lab, the Lloyd’s the company’s mission, opportunities, risks and slip written under the Innovation ICX code at Lloyd’s. constantly evolving risk and insurance ICX allowance has been a big boost to innovation for requirements are fully understood. Apollo, enabling it to bring signi昀椀cant new capacity to programme. Through an in-depth Apollo also has a line-slip with OTT Risk under the ICX the market. With applications for autonomous vehicles set to code. OTT Risk also o昀昀ers parametric insurance understanding of our mission, our business spread beyond shared passenger transportation (or products, but for non-damage business interruption and our autonomous vehicle ecosystem ‘ride-sharing’), into public transport, logistics, (NDBI) with a current focus on the digital economy. agriculture, mining and many other industries, stakeholders, Apollo and Lloyd's will be a partnering with Apollo on an embedded insurance OTT Risk developed its revenue protection solution collaborative force in bringing autonomous “ We don't have an innovation team at Apollo, product for autonomous vehicles will put both during cohort 9 of the Lloyd’s Lab, when Apollo we have an innovation vertical that is ultimately companies at the forefront of an insurance market persuaded the company to re-focus its product on the vehicle technology to market at scale.” that is currently a sleeping giant. digital economy rather than the traditional commercial an underwriting function, so our innovation Rebecca Marsden, Vice President of Risk space. focus is very external facing. We’re big fans and Insurance, Oxa According to Chris Moore, Head of Apollo ibott 1971, not only of the Lloyd’s Lab but also the Lloyd’s the company’s client knowledge has also enabled ICX allowance. We think it's a fantastic tool OTT Risk to think beyond individual companies and consider collaboration with some of the world’s that can give syndicates the confidence to go largest digital economy marketplace platforms, to out and write innovative risks. For all of the develop an embedded insurance o昀昀ering with huge global distribution potential. innovation we're doing in terms of new products, we leverage that ICX code.” Hayley Budd - Class Leader, Innovation, ibott 1971, Apollo *Source: UN Joint Coordination Centre. As at September 9th 2022 © Lloyd’s