The present turmoil in the Property Insurance market needs no introduction. Insureds are seeing Premiums double and triple whilst the same multipliers are also being applied to their Policy deductibles. The market is in ‘correction’ mode and brokers and clients are playing catch up.
The problem is that there really isn’t any solution out there. Prices are sky high and deductibles are too. Insureds, however, have no choice but to accept. Well ‘necessity is the mother of invention’ and into the market flows the first real time solution to increased deductibles and expensive Primary layers.
Many clients are looking to form a Captive to address their coverage needs but the Captive market isn’t necessarily in sync with the brokers needs and timescales. Setting up individual captive companies for a client is a good way of buying lower down coverage or participating in Primary layers but brokers very often don’t get open market quotes until 2 weeks before inception and this leaves very little room to act. Setting up a stand alone captive with Hartwell takes 6 weeks and we are one of the fastest movers in the market. Brokers need an even faster, easier, more flexible process to creating a captive for their client needs.
So Hartwell Insurance has launched its all new Multi Participant Cell for all Property risks. This slashes the time it takes to issue a policy to a couple of days or even hours! It also removes the need to pay Cell set up fees and because Hartwell can spread the cost of its Program Management Fees over a number of Cell Participants the cost of being in a captive is dramatically reduced. This brings the entire property market into the scope of having it’s own bespoke captive solution.
How does it work? Well, brilliantly is the short answer but the longer version is this: Hartwell has set up a Captive in which any number of insureds can participate (multi participant). Having set up the captive already the client no longer is required to pay set up fees. Each Participant gets their own policy, there is no risk sharing and no premium pooling (this is NOT a Group Captive). Even better, there is no need to collateralize the Captive, using Hartwell’s method of post loss funding the costs to participating in a captive have been all but removed. So client’s get the coverage they need, at prices they can afford, without the need to capitalize a Captive Cell.
What can be covered? All Property risks can be covered including General Liability. So Property could be a building or a car (hull) or cargo, or greenhouses or anything physical. What Perils? Absolutely any peril you can think of can be covered: wind, hail, flood wild fire anything at all. Timescales? We typically can indicate pricing within 24 hours. If our terms are acceptable then we can even bind within 24 hours. Where can we attach? We can attach at $1,000 if required. We want to see deductible buy down and Primary layers. What happens when/if the client wants to step out of the Captive? If the client no longer wants to be in the Captive then we simply hand back their accumulated premiums less losses and costs.