Blackstone Joins Brit’s Parent Fairfax in Investing in Lloyd’s Digital Venture Ki

September 17, 2020

Digital Lloyd’s syndicate KI reported that it has raised US$500 million from funds managed by Blackstone Tactical Opportunities and Fairfax Financial Holdings, parent of specialty insurer Brit that is behind Ki.

Ki said the capital commitment will fund its expansion as it launches in the fourth quarter of 2020. The follow-only digital entity hopes to write its first risk in January 2021.

Brit first announced its new venture Ki in May 2020. Ki was incubated by BritX, Brit’s innovation team, working in collaboration with Google Cloud.

Ki promises to reduce the amount of time needed by brokers to place their follow capacity. Ki’s algorithm, developed with support from University College London, will evaluate Lloyd’s policies and automatically quote for business through its digital platform, built by Google Cloud and accessed directly by brokers

Ki will underwrite using an algorithm-driven approach and offer instant follow capacity through its proprietary digital platform.

Ki is the first fully digital-only syndicate to be approved by Lloyd’s of London, in keeping with its Future at Lloyd’s initiative.

Ki is targeting a range of specialty business following selected leaders in the Lloyd’s market, including Brit.

Qasim Abbas, senior managing director at Blackstone, said Ki’s digital model will “enable it to build to significant scale, while its algorithmically-driven approach represents an important evolution in the portfolio management of specialty risks.”

Matthew Wilson, CEO of Brit and chairman of Ki, said the investments in Ki will allow the business to reach its full potential with significant committed capital ad that Blackstone is “entering the Lloyd’s market at a pivotal moment, with increased acceptance of digital models and a flight to quality.”

Mark Allan, CEO of Ki and Group CFO of Brit, said support from Blackstone is a “significant statement of confidence in Ki and the vision we have set out.”

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