Third-party managing agent Asta has secured “in-principle” approval for its syndicate-in-a-box (SIAB) named MCI Syndicate 1966.

The development paves the way for a new insurance product aimed at expediting the progress of new therapeutic drugs. With the support of Lloyd’s consortia, MCI Syndicate 1966 is set to begin underwriting activities from April 2024, anticipating an annual gross premium of £75 million for the year, pending completion of Lloyd’s final approval procedures.

The initiative will introduce a new insurance solution for the biotech sector, safeguarding clinical trial investments against the risk of failure. Leveraging advanced underwriting methods and technology, the product is set to cover risks deemed previously uninsurable.

Traditionally, financing clinical trials has been high stakes for biotech entrepreneurs, investors, and innovators, who often struggle to secure sufficient funds without relinquishing significant equity or control over their projects. The reticence of lenders and structured finance providers to engage with the sector has further compounded these challenges.

In response, this new insurance offering, conceptualised with support from TJP economic consulting, aims to stimulate lending, structured finance, and traditional venture capital investments, benefiting the biotech research community at large.

“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,” Asta CEO Lorraine Harfitt said.

A few months ago, the managing general agent also received approval for another SIAB that started underwriting in January 2024.

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