Specialist insurance and reinsurance market Lloyd’s is investing in artificial intelligence start-up Layr, a cloud-based commercial insurance platform for small businesses, following the launch of its second cohort of insurtech innovators.
The investment comes on the heels of Lloyd’s ‘bold new strategy‘, which includes a commitment to expand the scope of activity in Lloyd’s Lab, the experimental development hub for Lloyd’s of London.
Lloyd’s Lab has recently unveiled its second cohort of 12 teams, which include AI, gig economy, and language processing innovators. The teams started the 10-week programme on 29 April.
Layr, which is based in Atlanta, Georgia, participated in the first cohort of the Lloyd’s Lab and tested their cloud-based solution for providing faster access for small businesses looking to purchase liability insurance.
The insurtech company has secured an investment from Lloyd’s to develop its solution further. Layr is also exploring potential distribution opportunities with several Lloyd’s syndicates.
Lloyd’s said the platform bypasses carriers’ APIs and instead uses its proprietary price and appetite prediction engine to match business with the right policies from the right carrier at the right price. This allows Layr to provide indications for more lines of coverage across more industries in real-time.
The US start-up uses artificial intelligence and machine learning to compare an applicant against clusters of similar small businesses.
Lloyd’s CEO John Neal, said: “Lloyd’s Lab provides us with an exceptional environment to test and accelerate the implementation of new technological solutions. I am delighted that syndicates have teamed up with Parsyl and Lloyd’s itself has invested in Layr following the Lab’s first cohort, and I am looking forward to seeing what solutions emerge from the second cohort.”
Lloyd’s head of innovation Trevor Maynard, added: “Lloyd’s is in a unique position to drive innovation within the insurance market and the success stories coming from our first cohort confirm that. I am delighted by the breadth of experience and ideas of this new cohort, and by how the start-ups have strived to make their innovative solutions relevant to the Lloyd’s market. Having the engagement and expertise of so many market participants is another unparalleled advantage, and an important part of our success.”
Layr CEO Phillip Naples, said: “Modern business owners do everything online, so Layr is the natural evolution for small business insurance. We feel validated that the world’s oldest and most respected insurance marketplace agrees and recognises that the technology we’re creating is the future of small commercial distribution.”
Lloyd’s, Investment, Lloyd’s Lab, Artificial intelligence, Layr, Insurtech, Cohort, Small businesses, Insurance, Technology, London, North America