Specialist insurer Hiscox has partnered with RKH Reinsurance Brokers on a new variable consortium with a maximum line of over $20 million.
It will cover a wide range of general liability risks Hiscox considers ‘hard to place’ such as wildfire, trucking and construction.
Hiscox says the variable structure allows Hiscox and its consortium members to respond to more challenging and specialist risks, and provides brokers with a meaningful amount of capacity from a single underwriting source.
The consortium is the third of a suite of US liability consortia led by Hiscox, and has been put in place to respond to a shortage of capacity in harder-to-place areas of the excess and surplus lines market.
Combining the capacity of six Lloyd’s syndicates, the variable consortium is open to large risks domiciled in the US and has already bound $1 million GWP.
“Realising that some of the larger risks in highly exposed industries have been struggling to find capacity, we have been pleased to collaborate with RKH Reinsurance Brokers to put a truly innovative market response in place,” explained Ed Wallis, General Liability Line Underwriter at Hiscox London Market.
“The variable consortium offers general liability brokers and their clients a valuable point of entry for London market capacity, and will bring risks into the Lloyd’s market that might otherwise struggle to find a home.
“Our consortium members have given us the mandate to consider a broad spectrum of risks in capacity-challenged areas of the liability market, on the basis that they need not be constrained by a predetermined share of the portfolio.
“This allows them to vary their line according to the risks we put in front of them, allowing us to aggregate a larger amount of capacity than we might otherwise be able to obtain through a traditional consortium structure when the right opportunities present themselves. Ultimately this means we can be of greater service to our clients when they need us most.”
Tom Gauge, an Executive Director at RKH Reinsurance Brokers, added, “We were delighted to work with Hiscox to bring true innovation to the consortium placement process, which in turn has enhanced their product offering, and ultimately the ability of the Lloyd’s market to respond to its clients in a challenging trading environment.
“As specialists in Lloyd’s consortia at RKH Reinsurance Brokers, we recognise the value that these structures can bring to the Underwriting Room in terms of capacity, distribution, and expense management, and the important role that they will no doubt play as the Lloyd’s market reassesses how risks can be placed most efficiently. ”