Lloyd’s could feasibly support as many as 12 syndicate in a box (SIAB) launches a year, CEO John Neal has said.
The SIAB framework, which enables a fast-track route to market, is one of the six ideas in the wide-ranging Future at Lloyd’s strategy.
The Corporation has committed to getting SIABs up and running in 90 days.
In a press conference at the Monte Carlo Rendez-Vous, Neal said the Corporation was very much “managing the tide” of SIAB applications and proposals it had received in recent months.
“There’s a limit to what we can actually process simultaneously. We will think realistically about how many opportunities are valid which are being presented and how we resource for it, but it’s hard to estimate [how many launches a year],” Neal said. “I would have thought maybe eight to a dozen a year.”
Lloyd’s chairman Bruce Carnegie-Brown added: “As we look at who applies and how they perform and develop, I think there will be a scaling up of this over time. Frankly at the moment if we had two or three that is plenty to get going, so we can establish our way of working.”
As this publication has previously reported, there was initially a lot of uncertainty around the definition of “accretive” to the market – one of the early requirements for an SIAB launch.
Neal said the term “accretive” had actually been dropped from the SIAB section of the prospectus, which is due to outline more concrete details of phase one of the strategy execution on 30 September.
“I think that word [accretive] became slightly misrepresentative of what we are trying to do,” the CEO said.
Neal explained that the opportunity around SIAB sits in three different buckets. The first could be a single geography or product line where someone is demonstrating particular expertise but would struggle to set up independently, he said.
The second would be around “particularly successful” MGAs which want to demonstrate a commitment to their own business, Neal said. “They could come into Lloyd’s set up a consortium and allow [their] business to fly.”
The third is for companies being “genuinely innovative”, which Neal said he would define as different types of product and services, or even different types of cost structures.
“We’ve had all sorts of approaches from virtual artificial intelligence syndicates to different product opportunities around reputational risk,” he said. “Then we have to look at those as well to say: ‘How can we be an incubator for what the next generation of products or syndicates looks like?’”