Aon Benfield announced that it is utilizing its “groundbreaking FAConnect placement platform to respond to client demand for expanded Chile earthquake capacity.”
The system opens the way for Aon’s clients to access up to $ 50 million in coverage for any one risk, “to be provided by reinsurer Ascot Underwriting in an exclusive agreement. Ascot was the first market to bind a risk via FAConnect, and the new facility builds on Aon Benfield’s successful partnership with the firm,” in addition to the standard market capacity that Aon Benfield can access on behalf of clients.
Elliot Richardson, Chief Executive Officer of Aon Benfield Fac, the facultative reinsurance division of Aon Benfield, noted that the firm is continuing to “search for additional markets to expand its Chile earthquake offerings.”
Aon also explained that the “Chile earthquake facility is highly flexible in that it is non-restrictive to Occupancy/Class of business, it allows for Primary, Excess of Loss or Proportional Cover and varying periods of risk, and there is no minimum premium requirement.
“It can be utilized to reinstate cover which may have been exhausted, or indeed to provide a solution in new cover for Chilean business or for Chile exposures as part of a global program. The capacity is in line with standard London market conditions and offers fully defined Chile earthquake cover.”
Ascot’s CEO Andrew Brooks described the system as an “excellent vehicle for Ascot to respond to our customers’ needs for additional capacity. We are delighted to build on an already successful partnership with Aon Benfield and expand our offerings via FAConnect.”
According to Aon’s estimates the Chilean earthquake on February 27 has caused “at least $30 billion of damage,” and more than 500 deaths. “Although insurance penetration was far higher than for the preceding Haiti earthquake, there was an immediate demand for greater capacity for earthquake hazard in the region.”
Source: Aon Benfield
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