London, UK (3 July, 2020) – Hiscox, the specialist global insurer, together with RKH Reinsurance Brokers, have launched a new variable consortium with a maximum line of over US$20 million for a wide range of challenging general liability risks such as wildfire, trucking and construction.
A market first, the variable consortium enables Hiscox to bind capacity on behalf of their follow market, whilst allowing every consortium member the opportunity to flex their line up to a selected maximum on a risk-by-risk basis, rather than be tied to a predetermined share of all business.
The variable structure gives Hiscox and their consortium members the flexibility to respond to more challenging and specialist risks, and offers brokers access to a meaningful amount of capacity from a single underwriting source, increasing the efficiency of the placement process.
The consortium is the third of a suite of US liability consortia led by Hiscox, and has been put in place to respond to a shortage of capacity in harder-to-place areas of the excess and surplus lines market, which fall outside of the scope of their existing consortia.
Combining the capacity of six Lloyd’s syndicates, the variable consortium is open to large risks domiciled in the USA and has already bound US$1 million GWP.
Commenting on the launch of the new consortium, Ed Wallis, General Liability Line Underwriter at Hiscox London Market, says: “Realising that some of the larger risks in highly exposed industries have been struggling to find capacity, we have been pleased to collaborate with RKH Reinsurance Brokers to put a truly innovative market response in place. The variable consortium offers general liability brokers and their clients a valuable point of entry for London market capacity, and will bring risks into the Lloyd’s market that might otherwise struggle to find a home.
“Our consortium members have given us the mandate to consider a broad spectrum of risks in capacity-challenged areas of the liability market, on the basis that they need not be constrained by a predetermined share of the portfolio. This allows them to vary their line according to the risks we put in front of them, allowing us to aggregate a larger amount of capacity than we might otherwise be able to obtain through a traditional consortium structure when the right opportunities present themselves. Ultimately this means we can be of greater service to our clients when they need us most.”
Tom Gauge, an Executive Director at RKH Reinsurance Brokers, adds: “We were delighted to work with Hiscox to bring true innovation to the consortium placement process, which in turn has enhanced their product offering, and ultimately the ability of the Lloyd’s market to respond to its clients in a challenging trading environment. As specialists in Lloyd’s consortia at RKH Reinsurance Brokers, we recognise the value that these structures can bring to the Underwriting Room in terms of capacity, distribution, and expense management, and the important role that they will no doubt play as the Lloyd’s market reassesses how risks can be placed most efficiently. ”
For further information please contact:
Carmel McCarthy +44 (0)20 7081 4636
Notes to editors:
About The Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle.
The Hiscox Group employs over 3,100 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.
Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.
All press releases