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Carbon 4747 Syndicate in a Box: One Year On

Nick Tye, Active Underwriter for Syndicate 4747 and CEO of Carbon Underwriting, discusses the advantages and benefits of the Lloyd’s Syndicate-in-a-Box model

Monday 19 July 2021

Built upon a legacy spanning more than 300 years, seeking access to the extraordinary domain that is Lloyd’s can be unnerving – and understandably so. For newcomers to the industry, entry into Lloyd’s requires scale, profits and growth; but without licences or market access, meeting these requirements can be daunting.

The future of our industry, however, requires a constant stream of new talent, ideas and innovations. So, to overcome these barriers to entry, Lloyd’s worked with leading managing agents like Asta - the MA supporting Carbon - to develop, establish and manage the Syndicate-in-a-Box (SIAB) model.

SIAB offers newcomers a Lloyd’s syndicate platform, providing access to the Lloyd’s ecosystem, backed by the power and trust in the Lloyd’s brand, and supported with guidance on standards, plus the ability to operate in territories that might have otherwise been unattainable. In Carbon’s case, working with Asta and accessing their expert knowledge of Lloyd’s, the programme offers start-ups an excellent route to success – and I say that from experience.

Within a year, Carbon’s Syndicate 4747 has gone from strength to strength - having begun underwriting as a SIAB on 1st July 2020. The business is on track to achieve its third year estimated increase in stamp capacity to £62.5mn, in line with the Lloyd’s SIAB business plan framework, and continues to build out its Coverholder panel across a number of territories, including Europe, Australia and North America.

At the same time, Carbon Underwriting MGU has onboarded new S&P A-rated capacity providers as well as bolstering its team of talented underwriters, top data analytic engineers, pricing analysts and claims managers. Carbon’s team has grown from four members of staff over the first 12 months to now 16 employees, with further new hires planned for the future.

Strength in numbers

From the beginning, our ambition has been to transform how delegated authority business can be conducted and managed. The result is that we operate as an underwriting and data lead, staying focused on our coverholder partnerships. All negotiations and operations are conducted remotely and, thanks to our ability to analyse, manage and share data through our bespoke ecosystem Graphene, our coverholders can make profitable underwriting decisions.

Of course, ensuring efficiency isn’t only a key priority for us – but for the industry as a whole.  A key aspect of this will be the digital transformation of the London marketplace, of which great strides are already being made by the Future at Lloyd’s through the formation of Blueprint Two – a process which will transform the industry’s relationship with data.

Positioned for future growth

Looking to the future we will continue to build out our international Coverholder panel at Syndicate 4747. We are on target to become the syndicate of choice for Coverholder business globally which would be an incredibly rewarding achievement for Carbon. One of our core fundamentals is building strong partnerships and maintaining those relationships – with our team, Coverholder partners, capacity partners, reinsurers and FAL providers – all of which have been vital in getting us to where we are today.

Future focus

However you perceive it, digital forms a fundamental part of our future, bringing with it a new wave of digitally-minded and innovative talent. For those entering the market, the support of the SIAB initiative cannot be underestimated. It isn’t only a pathway into the market, but the route towards becoming a full syndicate, and part of the legacy that is Lloyd’s