Berkshire Hathaway Specialty Insurance Company (BHSI) announced that it has withdrawn from the Hong Kong Employees’ Compensation (EC) terrorism pool effective 1 December 2018.
Instead, BHSI will now offer terrorism coverage to customers directly, making them the first insurer to do so.
This decision benefits all BHSI’s new and existing EC customers for policies incepting or renewing on or after December 1.
The EC terrorism pool was established to provide terrorism cover for Hong Kong EC policyholders after the September 11th terror events when capacity had receded in the international markets.
Effective December 1, the EC terrorism coverage provided by BHSI is no longer subject to any of the pool’s restrictions.
BHSI’s customers are no longer subject to the 3% levy on EC policy premiums; BHSI policyholders no longer need to share a limit with all the other EC policyholders in Hong Kong; and payments for terrorism claims are no longer contingent upon payment or reimbursement from the pool.
“The feedback from the customers and brokers we have discussed our approach with has been incredibly encouraging,” said Marc Breuil, Chief Executive Officer of BHSI Hong Kong.
“BHSI’s Employees’ Compensation policies are now exclusively backed by its own financial strength – which carries the same S&P rating as the Hong Kong SAR Government – and provide EC terrorism coverage to policyholders without the obligation to pay the levy.
“We are excited to offer this market-changing coverage development to our current and future EC customers,” added Breuil.