Risks we recently Won…(October 2020)

FTA had another cracker month!
With the huge support of our brokers, we received close to 1,000 new submissions and were able to bind 1 out of 3 of these new business quotes. So, a big thanks to all of our supporting brokers.
Some of FTA’s LARGER key wins this month were:

  • A large, profitable and long-standing white-collar business seeking Management Liability. 
    $45M turnover, 7m net profit, $18m Assets, no borrowings. 

    FTA’s comments:
    As many of our brokers can attest, it is hugely frustrating for both broker and client to see long standing insurers for no apparent reason remove covers, increase premiums etc., particularly with regards to entity coverage.

    Whilst one of many lately, this particular insured was with a large local insurer and claims free for 12+ years. Based on what the underwriter said was a “whole of portfolio decision”, said insurer doubled the premium and removed Entity coverage.  Given most claims/allegations/defence costs etc. are often triggered/and paid for against the entity, this decision rendered the policy almost obsolete. Based on the risk profile and working with both broker and insured, FTA were after able to negotiate on balanced coverage and terms to offer a much more sustainable and bespoke policy to the insured. 

  • A large standing, continuously insured claims free manufacturer of NBN Steel Casing Boxes (not the NBN or technology itself). 
    $70M, design and manufacturer of NBN Steel Casing Boxes seeking D&C.

    FTA’s comments:
    Evident of the constant struggles and challenges of insurers whose portfolios have been burned on large cat loss exposed single project or heavy civil infrastructure D&C, this poor insured was placed into the same portfolio make up of many of the same systemic and cat loss exposed business that have caused said hurt.

    This insured designs and manufactures NBN housing/cases which you see on the street.  They are non-innovative, standard designed products which have been provided continuously under contracts for 20+ years. They are contractually driven to buy Professional Indemnity insurance and want to elect larger than required deductibles based on their view of the exposure. Generally, one of many signs of a good insured for FTA.  

    However, for many of those insurers whose D&C’s book is burning, they were unjustly told their risk is in the same boat as all D&C. FTA were able to speak with the Insured, obtain reviews of their full GL program – which pretty much covered off most of the BIPD risk – and subsequently provide a market competitive and sustainable solution. Whilst FTA’s price and deductible was more than twice the expiring (who could no longer provide terms), the Insured understood the importance of sustainability and has the confidence in being placed into a profitable, individually underwritten portfolio with FTA.

  • Excess of Loss private (non-listed) D&O
    Revenue $130M, wholesale/manufacturing.

    FTA’s comments:
    This Insured is 15 years continuously insured claims free.  They are financially sound, huge net asset position, lots of cash and minimal debt.  There are only two shareholders, and the primary terms have a major shareholder exclusion and absolute insolvency exclusion (which FTA believe is a must on all of its accounts, regardless).  However, due to the ever-increasing shortage of capacity in the D&O markets, the holding insurer, who had held this account for 6 years, had reduced capacity from $20m AB D&O to $10m. The broker received feedback from market such as, ‘we don’t follow them’, ‘we don’t like X…’or ‘we don’t have enough time to turn it around before expiry’ etc etc.

    FTA were able to accommodate a 2-day turnaround and provide its capacity sitting at $10 x $10. By applying some additional endorsements – which removed cover for what we believe to be commercial risks – we ensured that the product under our portfolio remains sustainable well into the future.     

    Whilst banks, financial institutions, other repeat ASX listed offenders, transport & logistics and heavy blue collar industries can continue to obtain ML and/D&O coverage, it surprises us to see these small to mid-sized target and profitable insureds, such as this company, struggling to obtain capacity.   

    As reflected above, FTA are hugely successful at underwriting each risk based on its merits and risk exposure to ensure that it is a suitable account to fit within the rest of FTA’s portfolio for a long time to come. With that said, FTA continues to successfully provide insurance for the SME market and target a Fast Turn Around on miscellaneous professions combined with broad coverage and competitive pricing…

    Some of FTA’s MEDIUM/SMALLER key risks this month were:

  • Labour Hire company seeking combined PI & GL
    Revenue $2.5M, recruitment consultant & consultancy agent.

    FTA’s comment:
    Holding Insurer is increasing their Labour Hire Rates across their portfolio by 30%.
    We were able to quote at or around expiry price and bound & issued policy docs within 3 days.
    FTA continues to specialise in white collar labour hire with our rates being the most competitive in the market.

  • A Licensed Builder seeking D&C policy
    Revenue $2.5M, recruitment consultant & consultancy agent.

    FTA’s comment:
    This insured held a policy with FTA previously but cancelled 2 months after the inception date.
    Six months later, we received a request from the broker to kindly re-quote this client again. We were happy to accommodate this request and quote a competitive premium on a broad policy wording to assist our supportive broker.

  • Another Licensed Builder with their own in-house draftsman for design work
    Revenue $7M, seeking D&C policy

    FTA’s comment:
    This broker was stuck in finding a D&C policy for his client as their current insurer suddenly increased premium more than 100%. This insured had a nil claims history and was 3 days out of renewal. The broker received a recommendation to try FTA and we were able to turn around terms the same day, match the price close from expiry and bound the policy within 2 days.
  • A Recruitment and Labour Hire start-up
    Revenue $250K seeking Professional Indemnity coverage

    FTA’s comments:
    The Insured was previously insured elsewhere but had to stop their business activities earlier this year due to financial sufferings from Covid-19. The broker was asked to find competitive quotes again this month but was struggling to find appropriate cover as they needed their on-hired staff (Project Managers) included in their coverage. FTA was able to assist the broker by providing this additional coverage plus an unlimited retroactive date.

  • A Software development/sales company seeking Cyber cover
    Revenue $1M, creating virtual ‘social spaces’ for people to collaborate through
    FTA’s comments:
    Broker was not aiming to re-market this risk but was curious about our pricing as we quoted a similar risk a few days before. Due to FTA’s competitive pricing and broad coverage, the broker reconsidered not re-marketing and placed both risks with us.   

  • A New Business venture creating an Online Platform for mental health support
    Revenue $100K, seeking IT liability coverage.
    FTA’s comments:
    This policy was bound with a $5M limit and policy documents issued within a few days.
It does not matter if it is a small, medium or larger risk; at FTA we will look at any submission that we receive into our inbox at quotes@ftainsurance.com.au. We will also provide a Fast Turn Around of all your enquiries and quotes.
So… don’t hesitate to send us anything at all!