Program Solutions & Opportunities with London Markets

Transcription

1 Reputation, professionalism and experience International Insurance and Reinsurance Brokers Program Solutions & Opportunities with London Markets Chris Elliott & Robin Barker-Hahlo Monday October 18, 2010 Reputation, professionalism and Reputation, experience professionalism International and Insurance experience and International Reinsurance Insurance Brokers and Reinsurance Brokers

2 Introduction Tysers Leading Independent Lloyds broker Founded in 1820 Lloyd s oldest broker Management buy-out October 2007 Wide range of specialist insurance classes 220+ professional staff in London Affiliation with TMPAA

3 Workshop outline Introduction to Lloyd s Surplus lines Capacity What Lloyd s offers Attraction of Delegated Business to London What London is looking for in today s market Lloyd s Coverholder approval process Claims Wrap up

4 Lloyds - Overview Lloyd s is the world s largest insurance market members join together as syndicates to insure risks on partially mutualised basis together 84 syndicates conduct business in over 200 countries Corporation of Lloyd s oversees the market, establishing standards and providing services to support its activities Ratings AM Best A (excellent) Fitch A+ (strong) S&P A+ (strong)

5 Lloyds Chain of security Lloyd s unique chain of security provides excellent financial security to policyholders $13bn held in Lloyd s US Trust fund

6 Lloyds US focus 45% of Lloyd s total annual premium of $35bn comes from USA and Canada Lloyd s writes 21% of $34bn US E&S market 23% of $24bn US R/I market Delegated business makes up 25% of all US premium Over 900 Lloyd s Coverholders produce over $3bn of premium annually

7 Lloyds Top 10 US States by Coverholder

8 Surplus Lines Capacity Freedom from rate and form filing requirements Easy administration Varying forms of distribution Conventional Broker Products Association Master Policy Risk Purchasing Groups

9 Attraction of Delegated Business to London Efficient product distribution Global access to local markets In-built peer review No need to build local infrastructure Performance based reward Loyal customer base - personal trusted relationships

10 Value of trading in Lloyd s

11 What does London look for? Long term relationships Predominately surplus lines Specialist / Niche type business With higher reinsurance costs + higher volatility, need lower attritional ratios Proven underwriting expertise London is looking to trade with long-term partners with specialist knowledge and proven track records of delivering underwriting profit not really targeting commodity type business

12 New Business opportunities in current market Not just a hard market play Bespoke facilities for non standard risks Develop programs that wrap around existing authorities Provide capacity for risks that don't fit mainstream facilities Competitive advantage with improved product offering Smaller volume deals minimum premium thresholds often a barrier in London underwriting profit comes before volume

13 New Business opportunities in current market Flexible in approach to opening up trading channels Get the stream flowing before we build the dam Responding to specific opportunities e.g. if an existing relationship terminates Demand for London products can grow quickly as domestic appetites decline Invest in building relationships now in anticipation of the change in market cycle

14 Examples of recent placements completed Specialist property contact to supplement PM s existing property facilities Professional liability / management liability contracts to be sold alongside commercial P&C facility Smaller management / professional liability facility where PM not currently paid a PC by domestic carrier Simply providing additional carrier support in cases where PM has dependency on too few markets A London relationship can enhance the product that an MGA can offer and existing relationships prove valuable when market conditions change

15 Lloyd s coverholder approval process Central oversight role to protect franchise Focuses on ensuring business fits with syndicates business plans Covers usual carrier due diligence topics Lead syndicate must sponsor application Coverholder application managed via Atlas system avoids duplication compliance information updated annually Best to start the approval process as early as possible to flag any potential issues

16 Claims London promotes US based TPAs Working closely with Program Managers Sufficient authority to manage non contentious claims Loss funds in place for routine claims payment Excellent proven experience when tested in major events Overall London s claim performance on delegated business should compare well to any US carrier

17 Conclusion In this market London capacity better suited to more specialist noncommodity classes Solid reasons for placing delegated business in London Support long term relationships Willing to give more flexibility to underwrite Product can endure with syndicated capacity Broader risk appetite Fair approach to sharing profits

18 About Tysers London domiciled no conflicts with our clients $700m annual premium volume Lloyd s third largest binder broker Binding Authorities are a significant proportion of our account Majority of our business placed in Lloyd s Can also structure solutions with London, European and Bermudian reinsurance markets

19 Tysers Client Geographical Locations (2009)

20 Tysers Expertise We have preferred access to a huge amount of capacity, across a diverse range of classes, globally

21 Conclusion Independence 100% employee-owned London-based, independent broker No USA offices Professionalism Trust and Integrity Client Focus Fast, efficient, accurate and bespoke service

22 Reputation, professionalism and experience International Insurance and Reinsurance Brokers Program Solutions & Opportunities with London Markets Chris Elliott & Robin Barker-Hahlo Monday October 18, 2010 Reputation, professionalism and Reputation, experience professionalism International and Insurance experience and International Reinsurance Insurance Brokers and Reinsurance Brokers