Two of the world's largest insurance brokers – Marsh and Willis Towers Watson (WTW) – have just released new exclusive placement facilities to enhance their overall service offering to clients.
WTW International CyCore Facility (ICF)
WTW has launched a new cyber and tech Errors & Omissions (E&O) facility, called the International CyCore Facility (ICF), that offers extensive cover for established and emerging cyber threats, including malicious acts, non-malicious acts, and technical failures.
It will also cover cyber incident response costs, including legal advice, IT forensics, data and cyber restoration, crisis communication costs and business interruption cover.
Backed by a host of Lloyds Syndicates, the ICF is designed for international clients headquartered outside of Great Britain and the United States with revenues up to US$1 billion.
According to WTW, the ICF will:
- Provide clients with increased (above market standard) limits of up to US$20 million in primary coverage using a single lead underwriter.
- Help to expedite the quoting and claims process by reducing the number of insurers involved on the policy.
- Use streamlined information requirements that reduce application time for clients.
- Utilise Lloyd's extensive licensing to provide assured protection across borders (subject to sanction limitations) and
- Be underwritten using WTW's proprietary wording to provide clarity for clients.
The launch of the ICF comes at a time when demand for cyber and tech E&O insurance is at an all-time high in the face of escalating cyber and ransomware attacks across the globe.
"Our annual D&O surveys consistently see cyber risk as a significant concern. The increased investment in AI is also causing emerging cyber risks. Hence, it's essential that we develop solutions that can meet clients' needs in different territories," commented Adrian Ruiz, head of Wholesale Cyber, WTW.
"The evolving cyber risk environment creates a need for a clear, flexible, and relevant solution which can be tailored to our client needs. The ICF offers our international clients access to extensive cyber coverage for established and emerging cyber threats," Ruiz said.
Marsh Directors & Officers (D&O) Echo Facility
Marsh has announced that its exclusive D&O Echo facility has been upgraded to provide clients with greater protection and financial stability amid continued volatile market conditions.
Available to Marsh clients globally, the D&O Echo solution has been extended to provide clients with up to $75 million of excess D&O insurance coverage, attaching anywhere above $25 million. In addition, clients can pre-purchase a reinstatement of the limit or lock in a price to purchase a reinstatement later, which can be accessed if cover is eroded by claims.
One major benefit of the new upgrade is that clients can now access significant amounts of insurer capacity through a single solution. Ordinarily, clients would need to purchase separate layers of additional capacity with multiple insurers to reach the same level of cover.
Marsh points out that reducing the number of insurers involved in the placement makes for a smoother, more efficient renewal process and streamlines the claims process, as fewer insurers would need to be consulted in the event of a claim.
Stephanie Manson, UK management liability leader, Marsh Specialty, said: "Clients have welcomed rate reductions over the last 12-18 months, (but) they remain concerned that another correction in underwriting sentiment could result in reduced capacity, substantial increases, and claims complications.
"D&O Echo provides clients globally with substantial capacity without being over-exposed to a single insurer, which helps limit the risks of market volatility and provides enhanced excess cover beyond what is available in the standard open market.”
Final Thoughts
Exclusive facilities like these are not uncommon. Multiple brokers have established specialist facilities across various specialisms that, if used correctly, can provide clients with a host of benefits, including market-leading cover and reduced pricing. The trick is knowing what, if any such facilities your broker has access to, and ensuring they are effectively utilising them to your advantage.
Source: Procurement Australia
