29 NPAs: Our New Products Announcements contains descriptions of new commercial insurance product offerings, acquisitions, and services. NPA content is global. This edition of NPA contains details from Advisen, Aon Benfield, Aon eSolutions and Mitchell SmartAdvisor Solutions, Ariel Re, Axiom, Bowring Marsh, Brownyard, DUAL, EQECAT, First Mercury and Valiant, GC Securities, Global Aerospace and Ohio Region Business Aviation Association Partners, Hilb Group, Ironshore, Lonmar Global Risks, Manchester Specialty Programs, Momentous and Doodson Entertainment, MarketScout Wholesale, Navigators, RE Chaix Insurance and Whitcomb, RIMS, Swiss Re and Alabama State Insurance Fund,Torus, and Zurich. Send material to and note that the next NPA deadline is day 28 of the month.
29 NPAs
Advisen’s Book of Business Report (BOBr) finds Coverage Gaps:The purpose of Advisen’s BOBr consulting project is to find variances in limits or pricing between your Book and the Advisen Aggregate data collection. The Advisen Aggregate is comprised of over 1.5 million programs of insurance. This figure corresponds to about 375,000 companies’ worth of data. We have sufficient data to analyze all major Lines of Business, all industry classes and SIC codes, and all insured sizes and types.Variances can be opportunities to upsell or cross-sell and identify gaps in coverage.Variances can help identify Business at Risk by focusing on situations where pricing is high or coverage is missing.BOBr output can also be a valid initiator for sales campaigns.BOBr output can be positioned to minimize Broker E&O risk and enhance credibility by having an independent third party look over your program structures. Contact
Advisen Paper - Using Risk Management to Revamp Strategy and Increase Company Value: “Insurance companies are using analytics to break strategic stalemates that prevent them from creating value”, says Jean-Pierre Berliet, author of a new 24 page briefing on Risk Management and Business Strategy. Even though changes in technology, distribution systems and customer expectations create opportunities for growth and profits, insurance company valuations have not recovered from the financial crisis. Insurance companies’ valuations remain weakened by perceptions of the inherent riskiness of their book of business and investments. To increase their value, insurance companies need to place risk management at the core of strategy development and execution. Jean-Pierre Berliet’s briefing titled “Risk Management and Business Strategy in P/C Insurance Companies” is $399 at Advisen’s Corner Store. It details how companies can incorporate risk management into strategy and reap valuations benefits that have been elusive so far.
Advisen’s Webinar - Deepwater Horizon Poses Threats and Opportunities to Insurers: The Deepwater Horizon oil spill may now be capped, but much of its impact on commercial insurers has yet to be felt, according to legal, environmental and insurance experts participating in an Advisen webinar on July 23. In addition to companies involved in the drilling project itself, all of which already have been sued, salvage firms, cleanup contractors and others involved in the cleanup process are exposed to lawsuits that likely will result in insurance claims. “BP is self-insured, but the other major players together have more than $2 billion in liability limits placed in the insurance market,” said Dave Bradford, an Advisen Executive Vice President and one of the webinar panelists. “The insurance exposure, however, is much broader than that small group of companies. Already some of the companies involved in the salvage effort have been sued, and almost any company taking part in the cleanup process is a potential target. Not only are generalliability and environmental liability policies exposed, but also directors and officers liability policies.”A recording of the webinar can be downloaded for no charge from the Advisen Corner Store at Deepwater Horizon Oil Spill Large Loss Cases Packet, with a diagrammatic representation of the various organizations with potential liability and details on more than 170 Deepwater Horizon lawsuits from Advisen's MSCAd large loss database, is available for $399 at the same address.
Aon Benfield Launches First Pan-Asian Typhoon Model: Impact Forecasting, Aon Benfield’s catastrophe model development centre of excellence, has launched the first fully functional Asian typhoon model to span the continent. The new model will help insurers analyze the financial implications of typhoons and develop reinsurance programs based on scientific principles. Typhoons are a major peril in Asia due to their severity and frequency. With rapidly growing property exposures across the region, insurers and reinsurers need more comprehensive and up to date tools to quantify and manage the risks that typhoons bring to their business.The new model covers the Asian typhoon-exposed regions of China, Hong Kong, India, Philippines, South Korea, Taiwan, Thailand, and Vietnam, including tropical cyclones generated in the Northern Indian Ocean and the North West Pacific Ocean. Will Gardner, Head of Aon Benfield Analytics in Asia Pacific said, “The new model, being the first completed of its kind, sets a platform for future scientific and engineering investments in the region. Current models focus on specific territories so we took advantage of the combined data and skills from the Aon Benfield teams to enable re/insurers to take a broader look at their multi-country portfolios. A notable feature of the model is our engineering-based damage functions which have been extensively validated against a range of historic events in Asia and around the globe.” Contact David Bogg at 0207.522.4016
Aon Benfield Launches Next Generation Real-Time Catastrophe Risk Management Tool: ImpactOnDemand is a new generation of its flagship risk management tools which continue to allow insurers to visualize, quantify and connect their exposures to catastrophic events. Insurers can upload their most current portfolios for viewing and analysis at any time.ImpactOnDemand combines the functionality of Aon Benfield’s award-winning ExposureView and CatPortal solutions in one comprehensive package, and includes new features that can be tailored to clients’ individual risk management requirements such as robust global mapping analysis and management reports. The web-based tool, which requires no installation or local storage capacity, provides real-time information on catastrophes including earthquakes, hurricanes, wildfires, tornado and hail events, volcanic eruptions, and other ad-hoc events, allows for continuous exposure analysis. Aon Benfield Analytics CEOSteve Mildenhall said, “Leading edge data analysis and reporting tools are becoming increasingly important to clients–the quality of data analysis can make a huge difference to their risk management strategies, and can help evaluate the inherent strength of their business models. ImpactOnDemand allows clients to dynamically interact with their data to build and deliver reports in real-time. Clients can upload and access new exposure or claims datasets at any time, to analyze current information when managing a catastrophe or monitoring portfolio growth.” Contact David Bogg at 0207.522.4016 or
Aon eSolutions and Mitchell SmartAdvisor Solutions Form Exclusive Partnership:
Aon eSolutions, the technology solutions business of Aon Corporation and Mitchell SmartAdvisor Solutions™, a division of Mitchell International, provider of information, workflow and performance management solutions to the Property and Casualty claims and collision repair industries, announces that they have established an exclusive partnership to deliver an end-to-end claims and medical bill review solution for the workers' compensation industry.As a result of this partnership, Aon eSolutions will replace its existing bill review engine by embedding SmartAdvisor into iVOS, creating an offering that will streamline operations, increase transaction speed and accuracy, enhance productivity, improve medical and administrative savings, and facilitate compliance. "Aon eSolutions and Mitchell are bringing a best-of-breed approach to bear on today's most difficult workers' compensation challenges, resulting in efficiency gains and cost savings that our clients really need in this tough economic climate," said Aon eSolutions CEO Kathy Burns. "With SmartAdvisor, iVOS clients now gain access to an enhanced and broader breadth of bill review options and capabilities from the iVOS desktop.” Contact Glenn Peake at 678.784.4776 or
Ariel Reinsurance Announces Approval as an Admitted Reinsurer in Brazil and Opening of a Representative Office: Ariel Reinsurance announces the opening of a representative office in Rio de Janeiro, Brazil and its approval as an admitted reinsurer by the Brazilian insurance regulator, Superintendência de Seguros Privados (SUSEP).Ariel Re’s initial focus in Brazil will be on Surety and Trade Credit reinsurance, underwritten through its branch office in Zurich, Switzerland, and managed by Thomas Rothenberger. Mr. Rothenberger commented, "We are pleased to begin operations in Brazil, which is an important part of the Latin American market. We look forward to working with our customers to identify profitable business opportunities both within Brazil and throughout the region.” Tom Hulst, Chief Executive Officer of Ariel Re added, “The establishment of a representative office and our admitted status demonstrates our commitment to building our operations in Brazil and is a further step in the development of our business throughout Latin America.” Contact Thomas Rothenberger at 044.2545.209 or
Axiom Announces a National Specialty Insurance Program for General Contractors: Axiom’s General Contractor Program targets general contractors with less than $15,000,000 in annual receipts and less than $3,000,000 for any given project. They will consider higher receipts and project values with no limitation on work subcontracted to others. Both Residential and Commercial Generals are eligible, including new ventures.Coverage includes general liability, workers compensation, and umbrella/excess written on an admitted and non-admitted basis in a majority of states through a carrier rated “A” (Excellent) by A.M. Best Co. It is perfect for agents and brokers who are looking for comprehensive coverage, competitive pricing and a strong, stable insurance market for their contractors. Contact Dan Djordjevic at 847.228.5883 or
Bowring Marsh Opens Hong Kong Office: Bowring Marsh, the Specialist International Placement Broker at Marsh, has expanded its footprint in Asia with the opening in Hong Kong of its ninth office. Specializing in property, earthquake, business interruption and casualty risks, Bowring Marsh Hong Kong’s office provides greater placement support for business coming out of Greater China, and access to international markets for Marsh’s global clients, especially those emanating from the Pacific and Middle East Regions. The Hong Kong office will be led by Godwin Chan, who joins to Marsh in Hong Kong. Mr. Chan will report to Geoff Lambrou, leader of Bowring Marsh in Asia. Commenting on the opening of the office, Nick Bacon, CEO of Bowring Marsh, said, “The continued expansion of Bowring Marsh in Asia demonstrates our commitment to providing clients with access to the most competitive and secure international insurance markets no matter where they are in the world. “Greater China is a significant focus for Marsh, and the rapid development of insurance markets in the region makes it a prime location to access capacity for inwards international business. The launch of Bowring Marsh Hong Kong will help us meet that growing demand more effectively and enable us to develop specialist product offerings from the Hong Kong market to support clients across Asia. Importantly, it also enables us to serve the growing needs of our Marsh retail operations, now the largest in Hong Kong, after the acquisition of HSBC Insurance Brokers Limited. Contact Jason Groves at 0207.357.1455 or
Brownyard Adds Animal Mortality Coverage: Brownyard Group, a program administrator providing specialized insurance coverage for select industry groups, announces that it has added Animal Mortality coverage to its PCOpro national pest control program. Coverage is offered to pest control operators for canines that are specifically trained to detect insects or vermin with a limit of up to $15,000 per dog (subject to policy conditions regarding fair market value).To be eligible, dogs must be age 7 or under, currently active in insect or vermin detection services, specifically trained for insect or vermin detection, and licensed if required by state or local government. “These dogs not only provide a valuable service to pest control professionals, but they are very expensive to have trained,” said John Culotta, PCOpro program manager. “This coverage will provide peace of mind to the owner, that should their dog suffer an unexpected death, they will be reimbursed for their investment.” Coverage is written on the Inland Marine form with premiums of $150 per dog, subject to the Inland Marine policy minimum premium of $500. Contact Ruth Connelly at 631.666.5050 or
DUAL Launches a New Property & Casualty Division: Specialist underwriting agency DUAL Corporate Risks announces the launch of a new Property & Casualty division with an initial capacity to be provided by Amlin. Steven Price has been appointed as Director of Property and Casualty to lead the division and joins from Glacier Group. The new division will offer a range of P&C products to the UK and international markets and will focus on specific segments by developing the relevant underwriting expertise.Russell Kilpatrick, Executive Chairman of DUAL Corporate Risks, said: “This is a significant development for DUAL and we are introducing Property & Casualty products to complement our successful PI and D&O offering. The range of products will be available to all of our brokers and initially will offer simple products to demonstrate our capabilities whilst finalising a more extensive product range. “Launching a P&C division is a natural extension for DUAL as it broadens our offering whilst building and capitalising on our existing successful and profitable business model”, he added. Steven Price, newly appointed Director of Property and Casualty, commented: “The product development and diversification for the P&C division is based around a simple proposition of brand, product and service, a proposition that DUAL’s D&O and PI divisions have already successfully implemented. “The new P&C products will initially be available to our 200 UK-based brokers but in the longer term will not be restricted to within the UK.” Before joining DUAL, Steven Price was Managing Director of Glacier Group since 2008 and has also spent time at Securit Re, QBE and Chubb in his 30-year insurance career. Contact Michael Gaughan at 0207.623.2368 or
EQECAT to Release First Basin-Wide Asia Typhoon Model, US Earthquake Model Update Using Soil-Based Attenuation: Catastrophe risk modeling firm EQECAT, Inc., announces that it has released the first basin-wide Asia typhoon model and an updated US earthquake model using soil-based attenuation. EQECAT’s Asia Typhoon Model is the first catastrophe risk model to provide a holistic view of risk across the entire western Pacific basin (including Japan, China, Taiwan, South Korea, the Philippines, Thailand and Malaysia), known for producing some of the world’s most intense tropical cyclones. In addition to capturing relevant spatial correlations, as individual typhoon events have the potential to impact multiple countries, the model factors in the direct effects of wind, storm surge, and typhoon rainfall-induced flooding. The model also considers variation in local building practices, design, and building codes. EQECAT’s 2010 US earthquake model, USQuakeTM implements the 2008 U.S. Geological Survey earthquake model and also features the innovations of soil-based attenuation (SBA) and three-dimensional vulnerability, to accurately capture physical phenomena while eliminating bias. SBA is a unique formulation of the Next-Generation Attenuation (NGA) relationships, assuming soil as the reference site condition. An SBA approach necessitates far less adjustment for site conditions, thus minimizing uncertainty introduced by soil amplification factors. To capture the increased susceptibility of a building once damaged, USQuake represents vulnerability for wood-framed residential structures using a three-dimensional surface, rather than the conventional two-dimensional curve. Contact Jen Wasilisin at 215.793.4666 or
First Mercury Acquires Valiant: First Mercury Financial Corporation has entered into a definitive agreement whereby its principal insurance subsidiary, First Mercury Insurance Company, will acquire Valiant Insurance Group, Inc., a subsidiary of Ariel Holdings, Ltd. First Mercury will purchase Valiant for an amount equal to Valiant’s tangible book value, which is anticipated to be approximately $55 million at closing.The company will use cash from its insurance subsidiaries to complete the transaction. Under the terms of the agreement, Ariel has agreed to provide First Mercury with full protection related to the runoff of Valiant's net loss and loss adjustment expense reserves and unearned premium reserves reflected on the closing date balance sheet. The transaction is subject to customary closing conditions and regulatory approvals and is anticipated to close in the fourth quarter of 2010. The components of Valiant’s existing underwriting platform to be retained by First Mercury include primary and excess casualty, professional and management liability, and marine classes of business. First Mercury intends to retain Valiant’s experienced underwriting teams producing these classes of business. Classes of Valiant business that are not consistent with First Mercury’s specialty niche underwriting focus will be discontinued. Through May 31, 2010, gross written premiums for Valiant were approximately $34 million. In the twelve months following the closing of the transaction, First Mercury anticipates that Valiant will write approximately $50 to $60 million of gross written premiums. Consistent with past practice to prudently use reinsurance on newer lines of business, First Mercury intends to retain approximately 33 percent of Valiant’s anticipated gross written premiums. The acquisition is expected to be accretive to First Mercury’s book value per share immediately at closing. First Mercury does not expect the transaction to have a material effect on 2010 earnings but expects the transaction to be modestly accretive to earnings in 2011. Contact Edward LaFramboise at 248.213.0406 or