Digit

[Cigarbutt]

^This trend ('tech' driven) is quite revolutionary for Lloyd's where tradition still relied on trusted person-to-person interactions.
Even if 'fancy' words are used, this is basically a way to modernize and make interactions more efficient, attracting alternative capital (and fees) along the way.
The 'lead' underwriter still does the technical work and the complex risks will still require personalized attention but the 'follow-only' syndicate can efficiently match the more commoditized risk products to alternative capital looking for uncorrelated (and reasonable) return.
For some more information on foundational work, intent, process etc, write "Quarterly InsurTech Briefing Q3 2020 - Willis Towers Watson pdf" in Google, download the document and see pages 27-28.

[no_free_lunch]

In one of the more recent articles on Digit insurance they had mentioned how they were expanding to build out an api to allow other companies to use their infrastructure. Does anyone have any more insight into what that means?  It's all very preliminary but that would have huge potential if they can become some type of cloud provider in addition to their core insurance business.

[Pedro]

The 'lead' underwriter still does the technical work and the complex risks will still require personalized attention but the 'follow-only' syndicate can efficiently match the more commoditized risk products to alternative capital looking for uncorrelated (and reasonable) return.


I've yet to see convincing evidence that blindly following a lead's term is a good strategy. Leads sometimes have very speicific niche expertise (ie refineries) where they underwrite well and price properly as evidence by their historical loss experience but too many time's I've seen the brokers choose who the lead is based on their pricing being the cheapest. If you are blindly following a lead terms without doing your own due diligence thats a receipe for failure so I'm super curious to see if KI suceeeds. Understanding who its following, at what prices and terms to me is going to be fun to watch cause if its profitable i have no doubt other syndicates will just say "well if KI's on I'll be on. The super comptuer knows best"