Brokers, we cannot promise that 2021 will be an easy year for the insurance market, but FTA can promise to have your back!
FTA Insurance prides itself on its loyalty to our supportive brokers and have shown year-after-year that we can provide consistency and stable rates for your clients. FTA has plenty of capacity and the willingness to keep writing new business and provide renewal terms for your clients…even in a hard market!
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 DISABILITY CARE GROUP — ML POLICY
Around $100M in turnover
FTA’s comments:
FTA’s broker came to FTA seeking ML cover for an entity with over $100m in turnover in the labour hire industry. A lot of insurers don’t like labour hire and won’t cover them for ML as they are concerned about the EPL element of labour hire. FTA have a lot of experience in this area and were able to provide competitive terms and the required cover. Initially FTA provided a non-binding indication and when their proposal form and financials were provided, FTA removed subjectivities and bound the policy.
- CYBER POLICY
Around $30M in turnover
FTA’s comments:
FTA’s supporting broker came to us after a large insurer failed to renew their cyber account due to systemic and sizeable claims under this area. They had tried to seek comparable cover from various insurers, but to no avail. After FTA reviewed their expiring terms, it became clear to us why the Insurer’s cyber book was plentiful with claims and losses. The insured provides professional services, but their PI program excluded the cyber, and yet the expiring cyber policy, had nothing to expressly address the PI. Furthermore, the excesses for a $30m professional services firm in the financial markets…
FTA worked with both the broker and the PI insurer to ensure the covers were aligned and interlocking to avoid unnecessary claims/losses on both. Conditions were applied to ensure strict risk management. The coverage was made sustainable, by virtue of appropriate and measured underwriting, the price was comparable with expiring, and reflective of FTA’s entire portfolio. The broker took comfort that we were able to provide a sustainable solution for their client.
- A VARIETY OF MANAGEMENT LIABILITY RISKS
Revenues ranging from $2M to $15M
FTA’s comments:
As many of our brokers would know, the local insurers are taking unnecessary knee jerk reactions to COVID-19, by, for example, removing or materially reducing entity cover under the ML policies. Most brokers would also be aware that, most, if not all claims, are paid under the entity cover as it is far more difficult to prove negligence against a director than it is against the entity. As such, FTA have had a great month of picking up a large number of white collar, long standing, claims free ML risks on sustainable terms and at sustainable pricing. FTA continues to write a very profitable and consistent ML portfolio which year-after-year sees a 90+ retention rate.
- AN INSURANCE AGENT – PROFESSIONAL INDEMNITY
Turnover circa $80M with Nil claims
FTA’s comments:
Our very supportive broker approached FTA and was attacking a policy which wasn’t under the program of a client they hold. The broker who held this particular part of the program, had it incorrectly and cheaply insured elsewhere. The Insured was a continuously insured 15+ year claims free insurance agent, who provided insurance solutions under strict contract and exclusively for and on behalf of a very reputable brand of vehicle with fees in excess of $15M. FTA were able to turn our quotation around within 24 hours, offering Difference in Limit and Conditions, Extended Continuity and a range of excess options to help entice the insured into deciding whichever option suited them best. - PI, ML and a LOA!
Turnover circa $20M for a (non-professional) Association
FTA’s comments:
Our broker, who held the other products but not the ML and Professional Indemnity, came to us asking FTA to write the ML and Professional Indemnity for a (non-professional) association, that was claims free and was a long-standing client of the broker. The holding insurer had unjustifiably increased the premium by 50%, applied nonsensical endorsements immaterial to the risk, and as a result, made the broker who held the ML and PI go to tender.
Our supporting broker had sent it to 2 of the major insurers and FTA, however FTA were able to turn both the ML and Professional Indemnity quotes around within 48 hours at the target premium and on sustainable terms and conditions. In order to provide sustainable coverage, FTA removed some of the notoriously commercial risks often found in association bodies that have turned insurers off writing these risks and that the Insured did not want or think was covered in any event. In addition, FTA assisted the broker in discussing the coverage with the client. The holding broker was having difficulty placing both the ML and Professional Indemnity with the same insurer.
Within 3 days of FTA quoting, the holding broker (who was not a known relationship to FTA), approached FTA with a Letter of Appointment, requesting we release the terms FTA had provided to its broker. FTA formally withdrew its terms and advised the supporting broker to discuss the relationship and efforts with their client. The client decided to re-appoint the supporting broker. Our broker not only won the account but provided an all-encompassing solution at a sustainable price and with balanced terms and conditions.
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 $3M
FTA’s comment:
We received this new business submission from an Association that is specifically designed for Builders. FTA has started growing the book with this association significantly last year as FTA has one of the broadest Design & Construct PI policy coverages combined with sharp priced premiums and can still write up to $20M limits. - Branding, Design & Marketing company – PI policy
Revenue $4M seeking $5M limit of indemnity
FTA’s comment:
This broker was looking after the parent company overseas but was instructed to seek a local PI policy for the Australian branch. This was brought to FTA’s attention a day before Christmas and were able to provide coverage prior to the start of the new year which was required by the client’s overseas head office. Many other insurers / underwriting agencies were closed for business during the Christmas period, but you can ensure that FTA has always got you covered! - Management Consultant (workshops, individual coaching, strategic planning) – PI & GL
Revenue $100K
FTA’s comment:
This was a small Management Consultant that quickly needed a combined PI & GL policy in place and also requested coverage to be backdated. FTA turned the quote around within 24 hours and backdated policy documents were issued on the same day. - Not for Profit Organisation for Mental Health – Association Liability policy
Start-up company
FTA’s comments:
FTA was the first to respond to the broker and consistently stayed in touch. FTA was willing to cover the nature of the two different types of activities of the insured but had to quote under two different policies (Association Liability and combined PI & GL). We were able to quote both policies very cheap and cover all the activities which meant the insured went ahead and bound both policies with us. - Company that supplies IT services to the Government – IT liability
Revenue $3,5M - FTA’s comments:
This client needed both a $20M PI limit and $20 GL limit on a IT liability policy as a contractual requirement from the Government. FTA was able to provide both limits with very competitive pricing and policy was bound within a few days of the initial request. .
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!