Howden launches innovation hub with £500m capacity for new risks

Broker Howden has launched an insurance innovation hub with £500m of delegated underwriting capacity that it says will fast-track the development of insurance solutions for new and emerging risks. Subject to Lloyd’s approval, Howden Ventures has secured backing from Lloyd’s underwriters including Tokio Marine Kiln, Chaucer and Liberty Specialty Markets. Howden said the new launch is a “world-first delegated underwriting authority”, drawing on expertise from innovation teams across the global insurance market. Howden Ventures will focus on solutions for new risks driven by climate change, disruptive technology, macro-economic uncertainty, changing demographics and geopolitical pressures, Howden said. Howden Ventures will commit an initial sum of £10m to global insurtech, with the ambition to support a minimum of five new start-ups in the sector over the next two years. “By bringing together funding, underwriting capital, expertise, governance and distribution all in one place for the first time, Howden Ventures will create an end-to-end platform and commercial solution that accelerates new product development and insurance innovation,” it said. Tom Hoad will lead Howden Ventures, which launched having completed its first investment in CetoAI, a marine technology company combining AI and data analytics to manage machinery breakdown risk in global shipping. Hoad said: “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.” He added that the platform will combine the managing general agent model with insurtech innovation to bring together talent across the industry and foster fresh thinking. “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,” Hoad said. David Howden, CEO of Howden, added: “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. 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.” Dawn Miller, commercial director at 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.” Tony Hildrew, founder and CEO of CetoAI, said Howden Ventures’s investment will help it address emerging risks for shipowners as vessels become larger and more technologically advanced. “Their financial contribution and unparalleled network, including some of the largest shipowners across the maritime sector, will support our significant growth ambitions as we continue to bring fresh thinking to the maritime market. The funding, underwriting capacity and expertise that we can access through Howden Ventures is unparalleled,” Hildrew said.

Howden launches innovation hub with £500m capacity for new risks

Howden Ventures secures first investment in marine technology company CetoAI

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