Becoming a coverholder to grow you business, especially the classes of business you write:
Global & Partners Reinsurance Brokers (G&P) launched in 2003 through the merger of two HH & Partners and Global Marine Services.
The aim was to provide clients with the broadest range of insurance solutions. In early 2000, the partnership decided Lloyd’s was the perfect market for its clients due to its ability to accept single risks, which are difficult for the local market to accept.
After a long history of working and dealing with risks at Lloyd’s, G&P’s first binding authority was granted by Beazley Furlonge with support from BMS Broker. Since 2003, G&P has dealt with seven Lloyd’s binding authorities out of nine binding contracts managed.
Binding authorities enable G&P to place complex and niche risks which weren’t possible in their domestic Spanish market. The Lloyd’s distribution chain also means they are able to provide the solution quickly to their client.
This binding authority has been re-granted by Lloyd’s syndicates and year on year the ratio of premiums written and the number of providers and brokers are increasing significantly.
Today, G&P is one of the top leading coverholders for placing risks at Lloyd’s within the Spanish insurance market. G&P’s binding authorities have allowed it to work with more than 140 brokers and write professional indemnity risks, medical malpractice, personal accident, jewellery blocks, contingency and property damage.
How a broker becomes a Lloyd’s coverholder:
WBA is a Lloyd’s broker and coverholder managing 12 binding authorities.
Its desire for placing business with those who specialise in specific areas of expertise – thereby providing suitability of terms and conditions and continuity of coverage – has led it to place nearly all of its business at Lloyd’s (97%).
WBA does not have a direct insurance portfolio, as it works exclusively for other professional insurance intermediaries and therefore does not have direct contacts with the insured. That relationship is held with the wholesale broker.
Ninety-five per cent of WBA’s business is placed on binders – which allows faster coverage completion, as well as a wider scope of action.
WBA stands for ‘wholesale broker activity’, as WBA’s customers are retail brokers across Italy. It has over 350 regular customers and is made up of three business units providing quick and professional service in all classes of business.
Enabling a competitive advantage by product not available in the domestic market:
Albion Global Insurance Services was established in September 2007 and became a fully authorised Lloyd’s coverholder later that year. It provides insurance solutions for brokers, focusing on reinsurance in Spain and Latin America. Albion has underwriting authority from various Lloyd’s syndicates.
During 2008, Albion obtained more binding authorities, including contingency, property, liability, professional liability latent defect and fine art. It currently has the most binding authorities of any coverholder in Spain.
Being associated with the Lloyd’s enables Albion to introduce new products into the Spanish market and differentiate itself from its competitors.
The process of using binders:
Crest Underwriting manages various products on behalf of insurers based in Ireland, the UK and the EU. It was formed in 2000 as an Underwriting Agency, providing a range of products and services to more than 150 independent insurance brokers.
In 2004 Crest underwiting became an accredited Lloyd's broker coverholder, which enables it to place business directly into the Lloyd's and London markets on behalf of its broker network. This is either through pre-rated binders or prior-submit binders.
A pre-rated binder is a binder where the rates are pre-agreed and each risk is not required to be submitted to the underwriter for quotation except for special acceptances. Crest underwrite risks on these binders in accordance with predetermined underwriting criteria and predetermined rating guide.
Pre-rated binders are usually set up to cater for trade specific facilities such as contractors liability facility.
A prior submit binder is a binder where all risks must be submitted to underwriters for quotations. Once quotations are issued by underwriters the delegated authority is authorised to bind cover and issue documentation. Prior submit binders usually cater for a wide variety of trades and sizes.
The benefit of being a coverholder compared to a broker:
AEC Spa Underwrites risks in Italy for both brokers and independent agents.
It specialises in the following lines of business: Professional Indemnity, Public Officials, Individual Medical Malpractice and Personal Accident Insurance cover, with single policy premiums up to EUR 150,000.00
The company was established in 2001 as AEC Broker srl and in the same year it acquired the status of Lloyd’s Approved Coverholder, following the completion of the Standard Lloyd’s Application Form for Coverholder Approval which can be found on the Lloyd’s system Atlas.
Being a Coverholder means for AEC freedom to quote, bound and issue policies documentation within the terms and conditions of the Binding Authority they have in place with Certain Underwriters at Lloyd’s of London.
The Binding Authority, or Binder, provides a flexible approach to customer’s needs: even those risks which would normally be placed on a facultative basis due to their peculiarities can be bound on the Binder by way of “Special Acceptance” by the Insurers.
Having been Ireland’s first insurer to break into the online market in 1999, Get Cover is an innovator and remains one of Ireland’s leading online insurance providers. Hundreds of thousands of customers from across Ireland and the UK have visited the company’s site www.getcover.com.
When Get Cover was preparing to enter the home insurance market in 2006, Lloyd’s seemed like an obvious choice as an underwriter, due to Lloyd’s reputation for being reliable, approachable, dynamic and open-minded.
Get Cover become a Lloyd’s coverholder and obtained a delegated authority from Heritage syndicate. It worked with Heritage until it withdrew from the European insurance market in 2008. It subsequently transferred its accounts to Broadgate/Brit syndicate.
Get Cover has now firmly established itself as a leading home insurance provider, and its next goal is to move into motor insurance, which it hopes to do in the final quarter of 2010. It is also considering launching marine small craft insurance through a Lloyd’s syndicate.
Get Cover was founded by Finbarr Crotty in 1997.
