Find out how to approach insurers that are looking for innovative & new insurance products, from our roundtable discussion with leading London market underwriters.
Bringing an innovative insurance product to market involves overcoming a wide range of challenges – not all of them obvious, particularly to tech-focused startups. Perhaps the biggest challenge is finding the capacity to make your idea work in the real world. That’s why connecting from an early stage with brokers and underwriters that specialise in innovation is vital for ambitious new insurance startups, MGAs and InsurTechs.
To discuss these challenges and share practical insights, Costero Brokers recently hosted a roundtable discussion with two of the London market’s leading innovation underwriters.. Our insurance innovation Q&A participants are:
- Hayley Budd, Class Leader, Innovation, at Apollo Group
- Rob Jarvis, Head of Innovation at Tokio Marine Kiln (TMK)
- Host: James Gadbury, Divisional Director at Costero Brokers
Key highlights of the discussion:
James Gadbury: Thanks to both of you for your time today. To start, can you please tell us a little about your roles?
Hayley Budd: I lead the innovation class at Apollo. We underwrite capacity for new and innovative products that solve real customer problems. Some products we build ourselves, while others involve partnering with startups or MGAs.
Rob Jarvis: At TMK, I run the innovation underwriting team, focusing on novel and unconventional risks. Our job is to trial and grow these ideas until they’re ready for commercial scale.
JG: That’s great. Looking over your recent career, what would you say is your biggest achievement to date, or a piece of business you’re most proud of?
HB: Launching the Apollo Innovation ICX Consortium in 2023 was a big moment. Many doubted it could be done, but we created a fully delegated consortium that supports innovative insurance products. It’s still the only consortium of its kind, to my knowledge.
RJ: At TMK, we centralise new ideas in one place to de-risk them for other underwriting teams. It’s satisfying to see people now coming to us with ideas they’re not quite ready to take on themselves. I’m also proud of enabling socially impactful products – one recent example is Sola’s Wind & Hail Insurance, which provides rapid payouts and genuinely helps people.
JG: What are you looking for in the startups, MGAs, or InsurTechs that you partner with? And what common traits have you seen in the ones that are most successful?
HB: First, we’re looking for products that close real protection gaps. Tech is also vital, especially for parametric or usage-based insurance. Startups need scalable technology and a solid understanding of the regulatory environment. It’s important to respect the rules we work within.
RJ: I’d add that focus is key. Successful founders often pick one idea and execute it well rather than spreading themselves too thin. Startups should also bring us something we lack—be it technology, distribution, or data.
JG: Where do you see the big opportunities for innovation in insurance? Are there specific areas or markets you’d like to see new offerings in?
HB: We’re interested in innovative structures like parametric insurance with novel triggers such as non-damage business interruption, and embedded insurance solutions. Emerging technologies like AI and products supporting the carbon transition or addressing supply chain disruptions are also key areas.
RJ: Optimising existing products with technology is a significant opportunity and pays the bills today. However, entirely new solutions create fresh market opportunities for the future. Areas like battery technology, autonomous vehicles, and carbon initiatives are particularly exciting.
JG: Do you prefer MGAs improving existing markets or startups creating entirely new products?
RJ: Both have value. Enhanced products can scale quickly and generate immediate income, while new products take longer but create fresh markets. It’s important to balance the two.
HB: I agree. Both approaches have their merits, but new ideas addressing gaps, such as in emerging tech or environmental needs, are crucial.
JG: What makes the London market a good place for new MGAs or startups looking for capacity?
RJ: The sheer scale and concentration of insurance talent and capital in the London market are unmatched. With more than 60,000 insurance industry people, 350 major insurance and reinsurance companies, and 200 broker firms in such a small area, the resources here are incredible.
HB: Lloyd’s of London is built for hard-to-place business. Programs like the Lloyd’s Lab accelerator and the ICX Innovation Class allowance offer startups unique opportunities to test ideas and access mentorship. The collaborative culture also fosters innovation.
JG: What are the common mistakes startups make, and what should they try to avoid?
HB: Many startups try to move into insurance without addressing a real problem. Others underestimate the regulatory environment or overestimate how much of the premium is available for technology.
RJ: Startups often misjudge the economics of insurance and the thin margins involved. Taking venture capital (VC) can also lead to unrealistic growth expectations, misaligned with what insurers prioritise.
JG: In your view, how can an expert broker like Costero assist insurance startups, MGAs and InsurTechs in securing capacity and bringing innovative products to market?
HB: The right broker can unlock distribution opportunities, ensure operational basics are in place, and help startups navigate regulatory complexities. They play a vital role in getting the foundation right.
RJ: A good broker provides valuable commercial validation. If a product reaches us via a broker, it’s likely been vetted for market demand. They’re also helpful mediators between risk-averse underwriters and ambitious startups.
JG: Thanks so much to both of you for your time and insights. This has been an incredibly valuable discussion.
If you’d like to discuss your idea for a new insurance product with us, or learn more about what capacity is available, , please get in touch with our expert James Gadbury at Costero Brokers.
