Lloyd’s Invests in Lab Alumni for Cyber, Modeling Solutions

Lloyd’s said it made the first two investments from its Central Fund private markets allocation to support two Lloyd’s Lab alumni — Axio and REOR20 — to develop their insurance solutions within the London insurance market.

Source: AM Best | Published on February 12, 2024

Lloyds cyber modeling investment

Lloyd’s said it made the first two investments from its Central Fund private markets allocation to support two Lloyd’s Lab alumni — Axio and REOR20 — to develop their insurance solutions within the London insurance market.

The investments are related to cyber physical damage for Axio and automated risk modeling for REOR20, Lloyd’s said in a statement.

The investments will remain undisclosed and represent noncontrolling stake in the companies with an approximate value of
between $50,000 and $250,000, Lloyd’s said.

Axio helps businesses manage their cybersecurity performance by leveraging tactics such as maturity assessments, cyberrisk
quantification insurance coverage analysis, and automated program
planning, Lloyd’s said.

REOR20 develops the next generation of flood models, providing accurate hazard information at lower cost. The firm combines high-fidelity computational engineering tools
with innovative artificial-intelligence methodologies, enabling detailed modeling while
employing minimum resources, according to Lloyd’s.

“As part of Lloyd’s ongoing commitment to innovation, today’s announcement is an excellent example of the power of Lloyd’s Lab’s accelerator program, which forms an integral part of our innovation hub located in the heart of the City,” Dawn Miller, commercial director, Lloyd’s, said in a statement. “We look forward to driving the increased prominence of the Lab in its mission to innovate the market, through our support and backing of companies with exceptional solutions.”

“I’m honored to welcome Lloyd’s to the Axio investor family,” said Scott Kannry, chief executive officer, Axio. “One of our founding goals was to help the insurance industry better tackle cybersecurity risk, and the investment support from Lloyd’s is evidence of our unique ability to deliver on that goal.”

“Lloyd’s investment in our innovative tech startup is not just a financial backing; it’s an endorsement from the heart of the global insurance ecosystem,” said Danny Chatziprodromou, founder and CEO, REOR20.

An extreme cyberattack risk scenario may see the global economy take as much as a $3.5 trillion hit, according to Lloyd’s. A systemic risk scenario released by Lloyd’s models the global economic impact of a hypothetical, but plausible, cyberattack on a major financial services payments system that could bring widespread disruption to global business and potential global economic losses.

More than 20% of the world’s cyber premiums are placed in the Lloyd’s market. Lloyd’s said it seeks to support the sustainable growth of the class while encouraging innovation for new products, such as through the Lloyd’s Lab.