Munich Re Co. will launch the first so-called Syndicate-in-a-Box at Lloyd's of London, according to Jon Hancock, the market's performance management director.
The Syndicate-in-a-Box concept, part of the new Future at Lloyd's strategic plan, is designed to allow companies to more easily and cheaply set up shop in the Lloyd's market.
Speaking at the launch of the blueprint, Hancock said the new Munich Re Syndicate-in-a-Box has received approval of the Lloyd's board and will be ready to start trading on Jan. 1, 2020. He said the new venture would be a "specialist innovation syndicate" covering new and existing customers. It will write "a range of innovative products," including protection for the renewable energy sector and parametric coverage, he added.
More to come
Beyond the new Munich Re venture, Hancock said the first phase of the Syndicate-in-a-Box initiative would involve receiving applications in January 2020 and approving new ventures that year. Lloyd's will then review which of the new rules being created for the program it could apply to new entrants and even existing syndicates.
The Syndicate-in-a-Box is one of six new initiatives that make up the Future at Lloyd's blueprint. The other five are a platform for complex risks; an exchange for less-complex risks; access for external capital; a new claims service; and a new suite of products and services open to all market participants.
Quick wins
Also speaking at the blueprint launch, Lloyd's CEO John Neal said the market would be in transition mode for the next six months. Lloyd's will share "comprehensive plans" in February 2020 on how the project will progress, he said. It will then start building early versions of key components of the risk exchange, the complex business exchange, and the claims platform during 2020.
"Throughout the build process, we will be looking for early and quick wins on the basis that a phased approach will both de-risk the delivery and offer some clear early business benefits," Neal said.
