London market veteran joins digital risk exchange InsurX
London-based digital exchange for algorithmic capacity InsurX has attracted an industry veteran, who founded and led the management buy-out of Canopius, to join its board as chairman.
Former council of Lloyd’s member Michael Watson has joined InsurX as non-executive chairman. The company said Watson will provide “enormous governance experience” to support its growth strategy.
Watson is the founder and chairman of specialty lines re/insurer Canopius Group. He led the management buy-out of Canopius in 2003 with £25 million of equity capital and helped the business to reach its present scale through a mix of organic expansion and acquisition before relinquishing the role of CEO at the end of 2021.
Gilbert Harrap, chief executive officer and co-founder of InsurX, said: “Our ability to attract a Chairman of Michael’s stature illustrates not only the rising importance of algorithmic underwriting in the specialty insurance market, but also the potential of InsurX within it.
“That potential is reflected in our growth: at latest count we have 13 member insurers trading £100 million of capacity, and 20 global Lloyd’s brokers placing risk through our independent exchange.”
Harrap added: “Meanwhile we intend – before the year is out – to add new classes of business to our existing functionality to trade Contingency and Property D&F. Again, that’s ahead of schedule, in response to demand. We’ve had to recruit to develop those new capabilities, and to enhance our current offering, and develop our service and support functions as we mature. We’re driving the evolution of better, faster, cheaper risk trading in the specialty insurance market, and it’s happening fast!”
Watson said: “We have all known for about three decades that London must trade more efficiently, and I have seen lots of different digitalisation initiatives come and go. InsurX is finally delivering the market infrastructure we need to realise the promise of the digital revolution in general, and algorithmic trading specifically. I am delighted to support the venture, and I encourage all risk carriers and brokers to explore its offer.
“InsurX is the perfect solution for the market. It isn’t aligned to a specific insurer or broker, and has no aspirations to become one, but it offers those companies an extremely flexible way to extend their distribution or find new capacity. It’s a winner.”
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