Syndicate 1856 to underwrite new business lines as part of a multi-line transformation | Latest news
Specialist insurer ERS announced that Syndicat Arcus 1856 was authorized to underwrite new lines of business, supporting ERS plans to transform the syndicate into a (re) multi-line insurer.
The insurer has now obtained the necessary approvals to underwrite extensive lines globally, including directive and discretionary ownership, marine and energy liability, political risk, terror and war, freight and cash, professional lines and specialized reinsurance, such as aviation and marine.
The product expansion follows a successful fundraiser led by Boston-based private equity firm, Abry Partners, and a group of investors led by Aquiline. ERS first announced its support for Arcus in December 2020.
ERS Group Managing Director Peter Bilsby said: “These are exciting times for Syndicate 1856. The current environment has created a tightening market with reduced capacity in many categories.
“As a new entrant in the market with an expanded product line and capacity, this provides us with significant opportunities to grow profitably.”
This development follows a major recruitment drive, which has enabled the union to bring together specialist talent from across the market, giving it the ability to draft specialist business lines that require in-depth technical knowledge.
Mix partnerships and data
As part of this work, ERS will combine external partnerships and internal data science talent to create a market-leading insurtech platform to create differentiation and meet Lloyd’s Blueprint Two.
This combination will enable the syndicate to provide straightforward processing, advanced automated risk selection and machine learning algorithms to provide end-to-end service throughout the digital trading lifecycle.
Bilsby added, “Our industry is changing and unions need to go digital to take advantage of future innovations. Syndicate 1856 is no different, which is why we are evolving into an agile insurtech company, led by a team of recognized talent who use data and intelligent automation to improve underwriting decisions.
“This will give us a new way to manage our clients’ most complex risks.
“However, an important, and often missed, part of any digitization journey is the transition period necessary to achieve the vision. We recognize that today, not all interactions and risks can be digitized from end to end.
“We are positioned to trade in the most efficient manner for our brokers and will look to leverage our digital investments alongside brokers as the industry goes digital.
“We are in an excellent position. We have a clean balance sheet, a long-term strategy to generate sustained profitable growth and the capital to achieve it. “
ERS Insurance is an underwriting company of Lloyd’s – Syndicate 218 – specializing in automotive coverage for commercial customers for over 70 years. It insures passenger cars, classic cars, vans, taxis, minibuses, fleets, transport vehicles and agricultural vehicles.