Global insurance group Howden has unveiled an innovative venture known as Howden Ventures, pending approval from Lloyd’s, aimed at accelerating insurance product development.
Described by the broker as a world-first insurance innovation hub, the initiative launches with £500 million in delegated underwriting capacity and seeks to become an investment and risk incubator.
Drawing from the expertise of specialist innovation teams worldwide, Howden Ventures aims to revitalise the insurtech sector with its unique approach, the insurance group noted.
The platform’s delegated underwriting authority, supported by leading Lloyd’s underwriters like Tokio Marine Kiln, Chaucer, and Liberty Specialty Markets, provides significant syndicated underwriting capacity to facilitate the creation of groundbreaking insurance solutions.
Recognising the decreasing funding for the global insurtech sector, Howden Ventures has committed an initial £10 million to support at least five new startups within the next two years.
Howden Ventures brings together funding, underwriting capital, expertise, governance, and distribution in a single hub for the first time.
This comprehensive approach aims to expedite new product development and promote insurance innovation. As the UK government advances its Solvency II reforms, Howden Ventures will actively contribute to policy priorities by fostering innovation in the insurance industry and enhancing its societal impact.
The initiative, led by insurance innovation expert Tom Hoad, will focus on addressing emerging risks in a rapidly changing and interconnected world, Howden noted.
These risks are driven by climate change, disruptive technology, economic uncertainties, shifting demographics, and geopolitical pressures.
Tom Hoad, Head of Howden Ventures, stated: “Innovation is all about working together and, for the first time, Howden Ventures will assemble the most innovative thinkers in the insurance ecosystem to help solve some of the world’s most critical risks.
“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. By doing so Howden Ventures is aligning interests from all corners of the market to create an economic model that will help the insurance industry invest in the type of long-term, innovative solutions that clients are looking for.”
David Howden, CEO of Howden, emphasised the importance of Managing General Agents (MGAs) in fostering innovation in 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. I always say that the insurance industry needs to remain relevant to its clients and that is Howden Ventures’ job: to supercharge innovation by bringing great talent and quality capacity together with a turnkey platform to solve the big problems,” said the CEO.
Dawn Miller, Commercial Director, Lloyd’s, said: “Howden’s new commercial mechanism is a great example of industry collaboration which leverages the Lloyd’s market’s ecosystem of innovation and the MGA model to fast track new solutions. We’re proud to be able to bring people together through the Lloyd’s Lab to solve complex problems and find solutions to help our customers tackle critical risk management challenges and become braver, smarter and more resilient.”
Howden Ventures has also made its first investment in CetoAI, a maritime technology company that uses data analytics, engineering excellence, and artificial intelligence to manage machinery breakdown risk in global shipping.
This investment will enable CetoAI to reduce machinery breakdowns, increase vessel utilisation rates, understand operational risk in more detail, and reduce performance-related emissions, contributing to the transition to a low-carbon economy.
Tony Hildrew, Founder & CEO of CetoAI, expressed his delight at Howden’s support, emphasising the potential to address emerging risks in the maritime sector. He cited Howden’s financial contribution, network, and underwriting capacity as invaluable resources for CetoAI’s growth ambitions.
Daniel Whiteside, Global Head of Marine at Howden, praised the investment in CetoAI as a prime example of insurance’s ability to drive innovation and create products that address climate risk and resilience within the maritime industry.
