The Bermuda insurance market has launched two new products for the healthcare market: the Bermuda Market Follow Form Healthcare Insurance Policy and the Bermuda Market Reinsurance Agreement. Select Insurance brokers and underwriters from across the island have worked together to develop and offer these two new policy forms, which provide clients with ‘batch’ coverage and an affirmative grant for punitive damages, consistent with applicable law.
Under the arrangements, healthcare organizations will be able to secure up to $250 million of medical malpractice insurance capacity from six Bermuda-based insurers using a single policy document. All but one of the participating insurers are rated A (Excellent) by ratings agency AM Best.
The new products highlight the collective strength and ingenuity of the Bermuda Market. Their launch follows extensive research over two years by brokers at Aon, Bowring Marsh, Integro and Willis and the insurance carriers Allied World, Alterra, Endurance, Hiscox, Torus and XL into how healthcare clients’ needs have evolved.
Susan Pateras, principal, Integro Bermuda Limited, added: “Through the financial challenges of the last 48 months, we observed clients seeking to replace their larger blocks of capacity by forging global relationships with multiple carriers. These new forms were created to meet our clients’ desire for diversification. Not only do they allow Bermuda carriers to share risk on one form, they also serve to eliminate potential gaps in coverage by having pre-agreed wording which all approved markets have endorsed. This provides concurrency in coverage and affords higher standards for contract certainty as well as policy issuance.
Insurance market capacity
|Allied World Assurance Company*||A||$25 million|
|Alterra Bermuda Limited||A||$25 million|
|Endurance Specialty Insurance Ltd.||A||$25 million|
|XL Insurance (Bermuda) Ltd.||A||$100 million|
* At time of release, Allied World supports the Follow Form policy only
All participating insurers retain the discretion to issue the forms and use such endorsements as the insurer sees fit.
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