Hiscox offers cover for US firms scrambling to find protection
With the liability insurance sector in flux, Hiscox has launched two underwriting consortia that offer US companies and their brokers ways to cost-effectively access multi-million-dollar risk capacity from the London Market.
Consolidation along with mediocre results within the market have prompted some insurers to retrench or withdraw from US general liability insurance, making it harder for companies to find the cover they need. “The liability market is changing, having a knock-on effect on the number of markets from which brokers can choose,” says Nick Waddell, General Liability Line Underwriter at Hiscox London Market.
Championing product innovation, the Hiscox Primary Product 9412 consortium offers protection against faults in advanced and emerging technology or hard-to-insure products that have attracted claims previously. From electric scooters or e-cigarettes to various sporting goods, US manufacturers have a straightforward new solution for cover.
Hiscox Primary Product 9412 consortium offers protection against faults in advanced and emerging technology or hard-to-insure products that have attracted claims previously.
The consortium, in which Hiscox provides 55% of the capacity supported by other Lloyd’s syndicates, offers a line size of up to $12 million and has the broadest appetite for these kind of primary risks in the London Market.
“These ‘tough products’ aren’t well catered for by US insurers, so we’ve created an underwriting solution that can provide companies with effective risk transfer at a cost that makes sense to both parties,” says Waddell.
“It embodies the traditional Lloyd’s values that made its name known around the world: entrepreneurialism, reliability and a willingness to take risks which other insurers steer away from,” Waddell adds.
Big capacity for big clients
The capacity crunch has also affected big corporations that need to buy large amounts of cover. The Hiscox Excess Liability 9330 consortium, is currently able to offer $40 million of capacity, attaching anywhere above $15 million.
“Big losses, such as the Californian wildfires, have led to a reduction in capacity in London,” says Waddell.
The consortium offers a win-win situation for both brokers and Lloyd’s players. Brokers now have a simple and efficient way of gaining access to a meaningful amount of capacity, while enabling syndicates to be involved in liability insurance without having to fully commit to the expense of hiring their own underwriting team. “You need to have a line size of at least $25 million to be able to play in this part of the market. But the consortium allows syndicates to participate on business they otherwise wouldn’t get to see with only a $5 million line,” says Waddell.
The consortium allows syndicates to participate on business they otherwise wouldn’t get to see with only a $5 million line.
The new consortium offers a solution to the London Market’s problematic cost base. Brokers can tap into capacity from a number of syndicates while having only one point of contact for both underwriting and claims, while other London players can leverage Hiscox’s proven underwriting expertise and client relationships in this sector at an attractive cost.
“Not only do these consortia demonstrate the innovation within the Lloyd’s market for liability risks, but also that the market remains a relevant and cost effective option for brokers,” says Waddell.