Bermuda-based P&C re/insurer Sompo International has announced that its Global Risk Solutions division has entered a strategic partnership with Fisher Harris Shapiro to offer specialised protection against covered property perils to US commercial real estate and financial institutions.
Sompo GRS Replacement Value Protection helps protect lenders/owners in commercial real estate financings from a loss resulting from property damage greater than the replacement cost value of a property.
The new product covers the “shortfall” between the outstanding loan balances and the combined value of the underlying property insurance proceeds and the land that collateralises the loan in the event of a covered cause of loss.
FHS is an independent risk management and insurance consulting firm helping clients assess potential challenges and align insurance coverage.
“We are pleased to expand our capabilities to include this specialized insurance tailored specifically for our real estate and financial institution clients,” said Mr. Michael Chang, CEO of Sompo Global Risk Solutions.
“This innovative product was developed based on our extensive experience serving clients across two of our key industry verticals and we are thrilled to leverage the risk management consulting expertise of an industry leader like Fisher Harris Shapiro to offer this strategic solution to our clients and build with confidence.”
Marc Shapiro, President of FHS, added, “On any given day, real estate firms and the lenders who finance their transaction face unforeseen situations and at times may require insurance solutions, like Replacement Value Protection to satisfy the loan.
“We are excited to partner with Sompo Global Risk Solutions to help these firms better understand and anticipate these risks so they can close any potential coverage gaps.”
