Lloyds of London on Thursday said it will invest in Layr Holdings Inc., a cloud-based commercial insurance platform for small businesses, following a successful experiment in its innovation lab.
The investment comes after Lloyds last week presented a comprehensive modernization plan that will see much of its business go online as it seems to reduce the cost of doing business in the market.
As part of that plan, Lloyds said it was looking to work with multiple technologies and insurtech companies.
In a statement, Lloyds said that the investment in Layr would allow further development of its solution and that the insurtech company is exploring potential distribution opportunities with several Lloyd syndicates.
Lloyds did not immediately respond to requests for investment-level comments made.
Atlanta-based Layr was among the first cohort insurance company to participate in Lloyd's Innovation Laboratory where it tested its cloud-based platform that provides faster access to small businesses looking to buy liability insurance, Lloyd says in the statement.
The platform uses its own pricing and appetite engine to match business with "the right policy from the right carrier to the right price", allowing it to provide indications of more coverage over real-time industries, Lloyd says in the statement.
Unlike comparison engines or aggregates, the startup uses artificial intelligence and machine learning to compare an insurance applicant with clusters of similar small businesses, according to the statement.
In December 201
"Lloyd's Lab gives us an exceptional environment to test and accelerate the implementation of new technical solutions," said Lloyd's CEO John Neal in the statement.