Case Study: Tackling High Exposure to Catastrophic Loss
As the insurance market began to soften, our partner broker faced significantly increased renewal terms for a well-established Systems and Safety Engineering Consultancy specialising in defence and aerospace projects.
The complexity of the insured's work in the aviation and nuclear sectors, combined with the highly specialised nature of their consultancy, presents a substantial exposure to catastrophic loss. Even a minor engineering error could lead to a catastrophic event, given the high-risk industries in which the insured operates. This, coupled with market volatility, made securing favourable terms challenging.
Risk Analysis
We conducted an in-depth analysis of the client's risk profile and the current market conditions. Our goal was to identify a specialist insurer that not only understood the unique risks but was also committed to a long-term partnership.
We approached and negotiated with various Lloyd’s syndicates, focusing on securing A-rated specialist wordings that would offer the best possible cover at a competitive rate. Specifically, we obtained civil liability specialist Lloyd’s wordings from a leading syndicate in the engineering PI space. After thorough negotiations, we presented the broker with two viable options, both of which included significantly lower premiums and excesses.
Delivering Results
Servca secured a 30% reduction in the premium, offering a comprehensive Civil Liability specialist Lloyd’s wording tailored specifically for the engineering sector. This outcome not only alleviated the immediate financial pressure on the client but also provided them with long-term stability and confidence in their insurance cover.
Our Commitment to Broker Clients
As a specialist independent broker, Servca always devote time and care to understand the bespoke coverage needs of our clients first and then use these to shape the risk assessment and initial deep dive. In this way we avoid generic outcomes and often uncover critical gaps in coverage. As well as opportunities to better tailor bespoke solutions that work better for the insured, especially here they need to adhere to complex regulatory requirements.
To understand more about our approach, please get in touch.
Disclaimer
This article is intended for educational purposes only and does not constitute legal advice. Servca disclaims any liability for actions taken based on the information provided in this article.