Brokers, we hear you!
We keep hearing it over-and-over again that brokers are getting increasingly frustrated with other insurers due to a lack of communication, lack of proper underwriting and capacity being reduced.
FTA is pleased to continue to assist its brokers and to turn all your submissions around within 24 – 48 hours!
No matter how big or small the risk, we will underwrite each risk individually and communicate accordingly with our brokers. We appreciate all the ongoing support and in return…FTA enjoys doing the same for you!
Some of FTA’s LARGER key wins this month were:
- A REFURB AND FIT-OUT — D&C POLICY
Around $20M in turnover
FTA’s comments:
Our broker was attacking a medium sized (circa $20m revenue) office refurbishment and retail fit out D&C company off another broker who had the account placed via a reputable underwriting agency. This agency doesn’t actually write or provide cover for D&C and yet the existing PI policy was priced at around $5k for $10m Limit of Indemnity! Unbelievable right?Reflective of the holdings price was the fact that the existing program was also placed on a standard PI policy which excluded product defects, goods & workmanship (both without any professional services write back etc.), and a bodily injury and property damage exclusion!
Whilst the FTA pricing was more expensive than the holding, with the help of FTA, our broker was able to highlight the major deficiencies in the current policy and upsell the client to a broader and more appropriate FTA D&C policy, which contains all the traditional extensions such as mitigation costs, contractual liability write back, multiple causes of loss, product defect and liability write back for professional services, plus a broad D&C services definition.
A win-win situation all round. The insured got great cover at a reasonable price, the broker picked up a new client and the previous broker avoided an E&O claim!
- FUND MANAGERS CYBER — PI OR CYBER?!
$25M Funds Management Business
FTA’s comments:
Understanding the intricacies of cyber liability can be extremely frustrating and quite frightening for many, particularly due to the vast range of cyber policies available. The situation becomes even more perplexing when considering cyber for professional services type risks, as one must consider how each policy may or may not respond in the event of claims.Given the broad and expansive cover often afforded by some of the markets more broader type cyber policies, many of said policies have often paid claims which could have, and perhaps should have, been covered under other insurance policies. This is particularly important to note on those risks who also have a very large professional duty exposure for the management and care of third parties’ monies – such as fund managers.
Our broker had previously placed the Insured on a cyber insurers portfolio who no longer write fund managers due to these PI/ crime type claims being covered. It was found that the breadth of cover under the cyber, and the tiny excess, allowed for the third party claims to be pushed onto cyber as opposed to the IMI/PI policy. FTA were able to customise a solution whereby matching the same excess on the cyber as their IMI/PI and achieving a desirable premium. Rather than excluding the PI absolutely, FTA were able to ensure that the PI did not have a cyber exclusion of any type, and sit excess DIC/DIL over any potential dual coverage afforded under the PI; thus allowing a more competitive pricing for our insured. We also discussed the importance of a stand-alone crime policy with the insured and our broker, and the (often) overlooked benefits of segregating out crime from either the PI and/or the cyber or ML, subsequently protecting the claims history of each of these policies and also getting a discount on the premiums.
- NON-MILITANT, WHITE-COLLAR AND LONG STANDING UNION ASSOCIATION — PI & ML
$10M in turnover
FTA’s comments:
Our supporting broker was having trouble placing the PI and ML for a long standing profitable (non-militant) union body. The insurance market has historically had troubles with these types of insureds due to the availability of an expansive range of commercial type exposures being covered, such as bribery and corruption, unlawful or illegal strike outs or picketing etc. FTA have been able to assist our brokers in placing a number of these similar type bodies over the past four years, by providing a sustainable and bespoke option, which continues to afford these types of insureds the traditional type covers – D&O, EPL, Professional Indemnity etc. - RECRUITMENT AGENCY – PI & GL TERMS
Turnover circa $80M with Nil claims
FTA’s comments:
FTA is the largest underwriter of white-collar labour hire in Australia. On this account, the holding insurer significantly increased their rates to the holding broker a few days before renewal. The holding broker was then under pressure from their client who was extremely unhappy to receive the news of the increased premium so close to renewal. The client had threatened to find an alternative broker and the holding broker reached out to FTA. We were able to provide terms that were similar to the expiry terms and policy was bound, and documents issued within 3 days so that the insured could provide Certificate of Currencies to their clients. - A LARGE TECHNOLOGY SOLUTIONS COMPANY – CYBER POLICY
Turnover circa $15M
FTA’s comments:
Our broker had the opportunity to attack this large account, but he had to move quick as he only had a few days before the renewal date. The biggest concern was that the insured’s new acquired client had a contractual requirement that the policy needed to be approved by the WA Government. We provided our terms the next day and the policy was bound within no time. As the broker commented on his new win, ‘You’re a legend mate – thank you! My shout for a dinner next time we can be in the same state!’. Another win/win situation for all parties involved.
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:
- A Residential and Commercial Builder – Design & Construct PI policy
Revenue $2.5M
FTA’s comment:
This broker had approached a few markets prior to hearing about FTA. The builder had a non-negotiable contractual requirement to hold PI cover but wanted a reasonably priced policy with good coverage. The broker sent us this new submission and it was bound on the same day. - A Business Procurement Consultant incl. Project Management thereof – PI policy
Revenue $500K
FTA’s comment:
The broker needed to provide their client with same day coverage as the insured let his cover lapse with his previous insurer due to insufficient coverage. Do we need to say more…? - An Accounting and IT support company – IT Liability
Revenue $200K
FTA’s comment:
Provided the broker with Extended Continuous Coverage and Difference in Limits & Difference in Conditions at the most competitive price to ensure that their client was fully covered. FTA’s policy wording was also superior to the coverage provided by other competitors. - Institute for Digital Support – Association Liability
Revenue $30K
FTA’s comments:
The broker was informed that FTA has a facility for Association Liability instead of trying to place it through an online system as he had previously done. We reviewed this risk and provided our terms accordingly combined with a highly competitive premium that the online system could not beat!
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 [email protected]. We will also provide a Fast Turn Around of all your enquiries and quotes.
So… don’t hesitate to send us anything at all!