MARKET NEWS, DATA AND INSIGHT ALL DAY, EVERY DAY THURSDAY 7 DECEMBER 2017 ISSUE 4,994 In depth: M&A revs up going into 2018 Deal values are up and now CVS and Aetna have agreed the year’s biggest transaction p4-5 AI insurtech FCA fines Cytora Bluefin over ownership raises disclosure £4.4m p2 p3 Get the complete picture Award winning scoops, trusted analysis and insight for the specialty and reinsurance sectors ID-Word Cloud-260x70.indd 1 11/09/2017 09:34 2 www.insuranceday.com | Thursday 7 December 2017 NEWS AI insurtech Cytora Market news, data and insight all day, every day Insurance Day is the world’s only daily newspaper for the international insurance and reinsurance and risk industries. Its primary focus is on the London market and what affects it, concentrating on the key areas of catastrophe, property and marine, aviation and transportation. It is available in print, PDF, raises £4.4m mobile and online versions and is read by more than 10,000 people in more than 70 countries worldwide. First published in 1995, Insurance Day has become the favourite publication for the London market, which relies on its mix of news, analysis and data to keep in touch with this fast-moving and vitally important sector. Its experienced and highly skilled QBE and Starr among investors, as start-up plans system roll-out insurance writers are well known and respected in the market and their insight is both compelling and valuable. Michael Faulkner Artificial intelligence: Insurance Day also produces a number of must-attend annual Editor Cytora has secured £4.4m events to complement its daily output, including the Insurance Day London Market Awards, which recognise and celebrate the from a funding round very best in the industry. whiteMocca/Shutterstock.com For more detail on Insurance Day and how to subscribe or attend its events, go to subscribe.insuranceday.com nsurtech firm Cytora has raised £4.4m ($5.9m) in a funding round, Insurance Day, Christchurch Court, 10-15 Newgate Street, with investors including insurers London EC1A 7HD Starr Global and QBE Group. IThe funding comes as the firm, which uses artificial intelligence (AI) Editor: Michael Faulkner and open source data to improve the +44(0)20 7017 7084 way insurers quantify, select and price [email protected] risk, prepares to roll out its system Deputy editor: Lorenzo Spoerry across property and casualty lines with +44 (0)20 7017 6340 a core group of insurers. [email protected] QBE announced yesterday it would deploy the Cytora Risk Engine from ‘With ever-increasing levels of available data, Editor, news services: Scott Vincent +44 (0)20 7017 4131 next year. we can really see the benefits AI and other [email protected] For the past year, Cytora has been similar technological advances bring to working with a consortium of commer- Global markets editor: Graham Village cial insurers to embed its technology. the industry’ +44 (0)20 7017 4020 These insurers include QBE, XL Catlin Maurice Greenberg [email protected] and Starr. Starr Companies Global markets editor: Rasaad Jamie Cytora’s product captures the online +44 (0)20 7017 4103 footprint of potential risks by trawling access to information and insights that ing data science and engineering capac- [email protected] data from company websites, news arti- have traditionally been out of reach.” ity, Cytora said. cles and government datasets, then pro- Maurice Greenberg, the chairman Other investors include Cambridge Account manager: Matthew Smith +44(0)20 7017 7894 cesses it using AI algorithms to predict of Starr Companies, said: “With ever- Innovation Capital, Cambridge Enter- Business development manager: Toby Nunn +44(0)20 7017 4997 future claims, attractive risk profiles increasing levels of available data, we prise, Parkwalk Advisors and a number Advertising/events: Jefferson Emesibe +44(0)20 7017 4061 and quality of risks. can really see the benefits AI and other of angel investors. Head of production: Liz Lewis +44 (0)20 7017 7389 Production editor: Toby Huntington +44 (0)20 7017 5705 Ted Stuckey, head of the global inno- similar technological advances bring to Richard Hartley, chief executive of Subeditor: Jessica Sewell +44 (0)20 7017 5161 vation lab at QBE Ventures, the venture the industry.” Cytora, said: “Cytora’s technology opens Events manager: Natalia Kay +44 (0)20 7017 5173 capital arm of QBE Insurance Group, The new funding will be dedicated to up significant opportunities for the in- said: “Cytora allows insurers to gain fuelling expansion and growth, increas- surance industry.” Editorial fax: +44 (0)20 7017 4554 Display/classified advertising fax: +44 (0)20 7017 4554 Subscriptions fax: +44 (0)20 7017 4097 Munich Re-backed insurtech Wrisk All staff email: [email protected] authorised by FCA Insurance Day is an editorially independent newspaper and opinions expressed are not necessarily those of Informa UK Ltd. Informa UK Ltd does not guarantee the accuracy of the Insurtech start-up Wrisk has received into the sandbox, Wrisk said it was now The FCA’s sandbox allows companies information contained in Insurance Day, nor does it accept full authorisation from UK regulators, putting together a “full, end-to-end trial to test innovative products, services or responsibility for errors or omissions or their consequences. the company announced yesterday, run of the product”. business models in a live market envi- ISSN 1461-5541. Registered as a newspaper at the Post Office. writes Michael Faulkner. It plans to launch with contents in- ronment, while ensuring that appropri- Published in London by Informa UK Ltd, 5 Howick Place, The firm has also been formally surance in the first quarter of 2018, fol- ate protections are in place. London, SW1P 1WG. admitted into the third cohort of the lowed by motor later in the year. In addition to Wrisk, two other in- Financial Conduct Authority’s (FCA) Wrisk was launched earlier this surtech firms were chosen by the FCA Printed by Stroma, Unit 17, 142 Johnson Street, Southall, regulatory sandbox. year by CatCo Reinsurance Opportu- to participated in the third cohort Middlesex UB2 5FD Wrisk, which enables users to create nities Fund chairman, Nigel Barton, of firms in the sandbox, the FCA an- a credit score-style “personal risk score” and Markel’s former head of digital nounced on December 5. © Informa UK Ltd 2017. via an app, is aiming to make buying Darius Kumana. These were blockchain-driven flight personal lines insurance easier for cus- In October it raised more than £500,000 insurer Etherisc and insurance wallet No part of this publication may be reproduced, stored in a tomers, targeting underinsured groups ($669,027) in a crowdfunding campaign. Sherpa. retrieval system, or transmitted in any form or by any such as young people. This followed a £3m seed funding round, They were among the 18 fintech means electronic, mechanical, photographic, recorded or It acts as a managing general agent, with participants including Oxford Cap- companies selected for the scheme, otherwise without the written permission of the publisher using capacity from Munich Re. ital, Hiscox, Qatar Insurance Company which received applications from 61 of Insurance Day. Following authorisation and entry and other angel investors. companies. www.insuranceday.com | Thursday 7 December 2017 3 NEWS Davies Group FCA fines Bluefin over establishes innovation lab Expanding insurance services and ownership disclosure claims management specialist Da- vies Group has launched an inno- vation lab as part of its increased focus on digital transformation, writes Scott Vincent. Regulator finds broker did not have adequate controls in place to manage The company said the new proj- ect will “significantly increase” its conflict of interest when owned by Axa multimillion-pound investment in technology, digital transformation and product development. Scott Vincent Money: the FCA has fined Davies Group chief executive, Editor, news services Bluefin more than £4m Dan Saulter, said the lab, which Stopped_clock/Shutterstock.com will work under the banner of “Disruptive thinking”, will become a central plank in the firm’s tech- he Financial Conduct Au- nology and innovation investment. thority (FCA) has warned “Harnessing the power of digi- brokers of the importance tal transformation and innovation of not providing mislead- is a prerequisite for success in the Ting information to customers af- fast-changing global insurance ter fining Bluefin more than £4m and claims market,” he said. “We ($5.35m) for a lack of disclosure. work in partnership with leading The UK conduct regulator said insurance businesses and other Bluefin had promoted itself to highly regulated organisations customers as “truly independent” and they expect us to lead, deliv- during the period from March 9, er change, and offer solutions to 2011 to December 31, 2014, during their challenges.” which time it was owned by insur- Davies has partnered with De- er Axa. loitte consultancy Market Gravity The broker had a strategy to for the initiative. increase business placed with its Nigel Walsh, partner and head parent company ahead of treating pares its market study into the of insurtech at Deloitte, will serve customers fairly. ‘Insurance brokers must promote workings of the wholesale insur- as adviser and mentor for the ini- “Bluefin brokers did not disclose a culture in which they act in their ance broking sector, which will tiative throughout 2018. this policy, so customers risked customers’ best interests and provide closely examine competitive prac- Davies said it had set aside sig- being misled into believing they tices in the London market. nificant capital to commercialise were dealing with a broker who them with the information they need The FCA has said the study the best ideas generated by its staff.