The insurer’s Smart Tracker will transition into a ‘full market-facing syndicate’ at the beginning of next year

Insurer Beazley has been granted “in principle” approval from Lloyd’s of London to transition the Beazley Smart Tracker Special Purpose Arrangement (SPA) 5623 into a full syndicate.

The new syndicate will begin trading on 1 January 2023 – subject to approval of its business plan by Lloyd’s – and will exclusively underwrite business accepted by Beazley’s Smart Tracker.

Beazley’s Smart Tracker was launched in 2018 and underwrites London market broker portfolios, line slips and consortia business via a follow model. Currently, this business is accepted into Beazley Syndicate 3623 and is then reinsured into SPA 5623.

Beginning in January 2023, all business will be written directly into Syndicate 5623 – Beazley confirmed that the Smart Tracker’s underwriting appetite would not be impacted by its change in status.

Will Roscoe, who has managed Smart Tracker since 2019, has also been appointed as active underwriter of Syndicate 5623.

Smart Tracker currently writes a portfolio including property, casualty, marine and terrorism insurance – an appetite aligned with Beazley’s wider non-Lloyd’s offering.

The insurer’s follow model involves splitting out follow capacity in order to reduce duplication costs and improve efficiency for lead syndicates.

Smart Tracker employs a purely follow strategy and always follows a trusted Lloyd’s syndicate. It relies entirely on brokers providing a pipeline of new and renewal business.

Smart Tracker also leverages data to assess the historic and future performance of broker facilities, aiming to provide investors with “a lower volatility portfolio” that aims to “beat the Lloyd’s market average underwriting result”.

Demonstrating success

Adrian Cox, chief executive of Beazley, said: “The Beazley Smart Tracker’s innovative follow model is designed with operational efficiency and rigorous underwriting at its core, reducing the traditional duplication of costs and improving efficiency for brokers and clients.

“Its success demonstrates broker, client and third party investor support of this new underwriting approach, which I’m delighted has been recognised by Lloyd’s of London’s support of our plan to transition the Smart Tracker from an SPA into a full syndicate from next year.”