Asta, through its third-party managing agency at Lloyd’s, has received “in-principle” approval for a SIAB to deliver an insurance product that could accelerate the development of new therapeutic drugs. MCI Syndicate 1966, supplemented by Lloyd’s consortia, is planning to commence underwriting from April 2024 with a forecast annual GWP for 2024 of £75m, subject to the necessary final checks and processes from Lloyd’s.

Syndicate 1966 will bring the biotech industry a product that insures clinical trial funding in the event a trial fails.

Supported by TJP economic consulting as concept innovator, MCI’s insurance product is designed to encourage both lending / structured finance in an innovator-led model, as well as traditional VC investment.

Lorraine Harfitt, chief executive officer of Asta, said: “It has been a pleasure working with the team at MCI, and we look forward to our continued partnership. Clinical trial funding insurance is a revolutionary new insurance product that has huge unmet demand, and access to Lloyd’s will allow MCI to capitalise on this opportunity. This product is a clear example of what Lloyd’s has to offer society through innovation and technology-enabled underwriting.”

Phil Trafford, chief executive officer of MCI, added: “Working side-by-side with lenders and investors, this new syndicate-in-a-box will promote medical innovation whilst also bringing new accretive and profitable business to the Lloyd’s market. We are grateful for the guidance provided by Asta whose experience in bringing new ideas to Lloyd’s has made the whole process quick and efficient.”

---