In a groundbreaking move, Howden has unveiled Howden Ventures with an impressive £500 million of delegated underwriting capacity. This initiative aims to establish an investment and risk incubator that will accelerate the development of insurance products. The move is pending approval from Lloyd’s.
“MGAs are the innovation dynamite of the insurance industry. Cyber insurance, insurance for renewables, D&O insurance…”
David Howden, CEO, Howden
Tom Hoad, Head of Howden Ventures, said, “Combining the Managing General Agent (MGA) model with insurtech innovation provides the ideal platform to foster collaboration, and to merge external talent, fresh thinking, new technology, funding, and underwriting capacity.”
“MGAs are the innovation dynamite of the insurance industry. Cyber insurance, insurance for renewables, D&O insurance… they were all born in the MGA marketplace where capital meets innovative and entrepreneurial talent and capacity providers can be part of critical R&D that clients are crying out for by sharing the risk,” said David Howden, CEO, Howden.
Howden Ventures is set to tap into the expertise and resources of specialist innovation teams from across the global insurance market. It features a unique delegated underwriting authority, supported by leading Lloyd’s underwriters like Tokio Marine Kiln, Chaucer, and Liberty Specialty Markets, offering £500 million of syndicated underwriting capacity to drive the creation of innovative insurance solutions.
The global insurtech sector has seen a decline in funding after the Silicon Valley Bank’s collapse, but Howden Ventures is stepping in with an initial commitment of £10 million to support at least five new startups within the next two years.
What sets Howden Ventures apart is its holistic approach, bringing together funding, underwriting capital, expertise, governance, and distribution into one comprehensive platform. This approach is expected to expedite new product development and foster innovation in the insurance sector.
Leading the charge is insurance innovation expert Tom Hoad. He will spearhead efforts to address new and emerging risks in a rapidly changing world characterized by climate shifts, disruptive technology, economic uncertainty, shifting demographics, and geopolitical pressures.
Dawn Miller, Commercial Director at Lloyd’s, praised Howden’s collaborative approach, harnessing the power of the Lloyd’s market ecosystem to expedite novel solutions.
CetoAI
Howden Ventures has already made its first investment in CetoAI, a maritime technology company. They use data analytics, engineering, and artificial intelligence to manage machinery breakdown risk in global shipping.
With Howden’s support, CetoAI aims to reduce machinery breakdowns, enhance vessel utilization rates, and address operational risks in the maritime industry. This investment aligns with the transition to a low-carbon economy.
Howden’s involvement in CetoAI showcases the insurance industry’s potential to drive innovation, especially in addressing climate risk and resilience.
Source: Howden launches world-first insurance innovation hub with £500m of delegated underwriting capacity
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