(Imagine source: Koop Technologies website.)
Koop Technologies (Pittsburgh), an insurance technology company specializing in autonomous vehicles and robotics risks, has launched what it calls an industry-first Robotics General Liability and Errors & Omissions insurance product in partnership with broker CJ Coleman (London) and Lloyd’s of London syndicates. The new coverage is designed for off-road autonomous vehicles and robotics developers, operators, and service providers across various industries. It provides bespoke ratings using a proprietary risk assessment methodology developed by Koop Technologies.
Koop Technologies reports that the product is now available for purchase and distribution to robotics customers and retail brokers on the vendor’s Singularity Platform, announced earlier this year. Koop characterizes the product launch as marking the onset of “automation as a class,” a category the vendor says it pioneered by combining on-road and off-road automation use cases bound by software- and hardware-defined risk properties.
Meeting the Unique Needs of the Robotics Ecosystem
“Our new E&O product is designed to meet the unique needs of the robotics ecosystem,” comments Kamron Khodjaev, Chief Commercial Officer, Koop Technologies. “Automation is poised for exponential growth, and we are prepared to provide our clients and broker partners with an insurance program and experience created specifically for them.”
“In my 20-plus years in the insurance industry, I have always been drawn to ways we can apply technology to improve accuracy, consistency, and scope of data to understand risk better, says Andrew Roth, Director of Insurance, Koop Technologies. “Autonomy presents an incredible opportunity to advance underwriting in this way, and today, I am thrilled to say that this is exactly what we are delivering here at Koop.”
“CJ Coleman and I are proud to be supporting cutting edge companies in their growth, and we are excited to have a front row seat, alongside our trusted partners, as autonomy and robotics enter the mainstream,” says Hector Fitch, U.S. Lead Casualty Broker, CJ Coleman.
Unprecedented Growth in Off-Road Automation
Koop’s announcement of the new E&O product notes that off-road automation is growing at unprecedented rates, from last-mile delivery to industrial use cases. More than 3 million industrial robots1 are in use today, with an estimated compound annual growth rate of more than 20 percent over the next decade, Koop’s statement says. The projected global market for terrestrial autonomous systems is expected to reach $800 billion by the end of the decade, making it one of the fastest-growing markets ripe for new insurance products. Professional services robots are expected to dominate the sector. Additionally, the COVID pandemic of 2020 accelerated the use of robots. According to the Association for Advancing Automation, orders for workplace robots increased by a record 40 percent in the U.S. in the first quarter of this year. The numbers keep growing due to a persistent lack of labor to perform hazardous and repetitive tasks, the statement says.
Koop says that robots have unique technical and safety engineering attributes, making them a compelling risk class for insurance carriers. Koop Technologies says it developed the toolset to collect and analyze data from autonomous vehicles and robotics fleets, incorporating those risk attributes. It provides an edge in underwriting automation risks that the traditional markets currently underserve. Off-road robotics is one of the segments within the “automation as a class” risk category, where the risk profile shifts from human-centric exposure to software-defined exposure in real-world operating domains.