Beazley, Chaucer and Talbot have joined forces to form a political risk consortium in Asia offering increased capacity for a wide range of political and contract frustration risks.
The three insurers have partnered to offer capacity of up to $130m (£100m) for individual risks, with a policy period of up to seven years, through the Lloyd’s consortium based in its Singapore hub, the largest Lloyd’s market hub outside of London with gross written premiums of $680m in 2015.
Key risks covered by these policies include government intervention, confiscation and physical damage due to war, currency inconvertibility and contract frustration related to defaults, and non-payment by sovereign entities.
Michael Lum, political risks and trade credit underwriter at Beazley in Singapore, said: “The new political risks consortium at Lloyd’s Asia allows local companies to protect themselves against risks related to larger investments in potentially unstable geographies, backed by the collective expertise of three leading Lloyd’s syndicates.”
Margaret To, CEO of Chaucer Singapore, said: “Our brokers and clients told us they needed help solving the problems associated with transacting business in emerging markets. We took this on board, and have responded to the challenge by establishing the new political risk consortium.”
Jaime Taylor, political risks and trade credit underwriter at Talbot Risk Services in Singapore, added: “Talbot is delighted to work with Beazley and Chaucer to bring this new political risk consortium to Lloyd’s Asia. We expanded our global footprint into Singapore in 2007 and have since worked diligently to meet the needs of our clients here.
“Together, we will offer the Asia market the ability to assemble and deliver large scale capacity quickly and efficiently, delivering quotes for cover locally that meet our clients’ deadlines.”
Zurich disappointed in new #discountrate. David Nichols, Ch Claims Officer: "The failure to change the discount rate to a balanced level will only serve to increase the cost and, therefore, affordability of certain types of insurance - especially for higher risk customers." pic.twitter.com/ac1CfBzfxX— Zurich Insurance UK (@ZurichInsUK) July 15, 2019
- Analysis: Industry faces financial blow from discount rate revision
- ‘Bad outcome’ for industry as discount rate revised to -0.25%
- Allianz and LV win big at 2019 British Insurance Awards: Full list of winners
- British Insurance Awards 2019: Commercial Lines Broker of the Year - SME/Mid-Corporate - Towergate Insurance Brokers
- Majority of disputed claim rulings are won by insurers
- Zurich names Amanda Blanc's successor
- Ageas confirms Axa's Waks as chief risk officer for UK