Lloyd’s of London insurers Beazley and Hiscox have partnered to offer brokers and clients a D&O consortium through which the syndicates will provide materially higher limits and offer additional options to complex risks for U.S.-domiciled companies.
Central to the proposal is an increase in flexibility: by jointly participating on individual policies the consortium participants can offer alternative structures to brokers and clients. The capacity can be deployed in one tranche of up to $50 million or, more likely, as two individual layers within an insurance program.
Both insurers will retain full underwriting discretion. However, where a risk falls within the appetite of both companies, they will jointly be able to write a larger line than each could individually commit to.
According to Neal Wilkinson, head of Beazley’s Global Management Liability team, the agreement offers greater choice to brokers who are increasingly looking for key markets to provide larger primary lines or participation on multiple layers within an insurance tower.
Chris Warrior, D&O underwriter within Hiscox London Market, said the agreement improves the choice and flexibility available for large or complex risks and means the insurers can collaborate when their underwriting judgements align.
Beazley plc is the parent company of specialist insurance businesses with operations in Europe, the U.S., Asia and Australia. Beazley manages five Lloyd’s syndicates and, in 2012, underwrote gross premiums worldwide of $1,895.9 million. Beazley’s underwriters in the United States focus on writing a range of specialist insurance products. In the admitted market, coverage is provided by Beazley Insurance Company, Inc., which is licensed in all 50 states. In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd’s.
Beazley is underwrites a variety of insurance lines, including professional indemnity, property, marine, reinsurance, accident and life, and political risks and contingency business.
Hiscox, headquartered in Bermuda, is an international specialist insurance group listed. There are three main underwriting parts of the Group – Hiscox London Market, Hiscox UK and Europe and Hiscox International. Hiscox London Market underwrites mainly internationally traded business in the London Market – generally large or complex business which needs to be shared with other insurers or needs the international licenses of Lloyd’s. Hiscox UK and Europe offer a range of specialist insurance for professionals and business customers, as well as high net worth individuals. Hiscox International includes operations in Bermuda, Guernsey and USA.