Project staff and support

Nilgun Canakgoz (Intern, CARISMA, Brunel University)
Michael Samuels (Company supervisor, Lloyd's of London)
John Beasley (Academic mentor, CARISMA, Brunel University)
Vera Hazelwood (Technology Translator, Industrial Mathematics KTN)

This Internship project was carried out at Lloyd's of London, in conjunction with CARISMA, Brunel University. It is part of the KTN's Industrial Mathematics Internships programme, co-funded by EPSRC.

"At Lloyd's, we had previously done some work on optimal portfolio mixes and we wished to take this further and refine it more extensively, using bespoke business constraints within the optimisation process. Having Nilgun as a 5-month intern from Brunel University via the Industrial Mathematics Internship Programme, really helped us to make significant progress in this regard, making full use of her supervisor at Brunel. Recently, she presented her main findings of her work to the Head of the Franchise Performance Directorate (FPD), who was very impressed. She has now subsequently been offered a role within our team to continue this good work going into the future and assist on other important modelling projects", said company supervisor Michael Samuels, Senior Analyst, Lloyd's of London.

Project summary

Lloyd’s of London is one of the world’s best know insurance brands. It is however not an insurance company but a society of members, who underwrite in Syndicates on whose behalf professional underwriters accept risk. There are over 75 Syndicates who offer tailor solutions to respond to the specific risks of the client base. The syndicates operating within the market cover many classes of business including marine, aviation, catastrophe, professional indemnity, motor and many others.

The focus of the Internship project undertaken by Nilgun Canakgoz was to develop models that would help determine the mix of business in their portfolios to provide the highest return or minimum risk. The tools developed during the project will be used to advise both individual Syndicates and Lloyd’s of London themselves on how to manage the balance between risk and return.

A key result of the project is the application of mathematical techniques and methodologies, such as mean – risk models, within the business arena and a promotion of such advanced thinking and mathematical modelling, which can now be passed on to all of the Lloyd’s Syndicates. The outcomes of the project will further go on to promote and help enhance the application of these mathematical techniques within the insurance industry.

Nilgun Canakgoz, Intern & PhD student at CARISMA, Brunel University said, "Having 5 months internship at Lloyd's has been a great experience for me. I worked on "Optimal Portfolio Project" where the aim was to define the optimal mix of business for Lloyd's and the syndicates. I have developed two models to optimise the risk and the profit of both Lloyd's and the syndicates. Using my knowledge, analytical and technical skills, which I gained in the academia, in a real life project and seeing that my work has added value to Lloyd's is invaluable. I am also grateful to Smith Institute for being a bridge between industry and academia as I was offered a job at the end of the internship, to complete the good work that I have started. I would highly recommend PhD students to take the opportunity to get involved with industrial projects."