Example 2 - Long-standing US Smaller Financial Institutions Book

Program #22704


Program Profile

Program Title Example 2 - Long-standing US Smaller Financial Institutions Book
Program ID 22704
Capacity Seeker FI Risk Solutions Inc.
Capacity Seeker Type Insurance Intermediary
Classes Financial Institutions
Territories United States
Annual Premium $8,000,000
Main Products, Coverages and Limits PI, D&O and Crime for savings and loan institutions, mutual insurers and smaller insurers across the US
Direct and facultative policies written
$25m maximum LOI on PI and D&O
$5m maximum limit on crime
Contract Types Direct Insurance, Facultative reinsurance
US licensing requirements Excess & Surplus (E&S)
EU licensing requirements NA
Distribution Channels NA
Brief outline of the program’s distribution Business is originated from about 40 brokers including Aon, Wilils and Marsh as well as a variety of mid-market and specialist brokers.
Brief outline of how risks are underwritten, rated and priced and policies issued Underwriters receive submissions / slips from brokers mainly via email and occasionally via PPL
Each policy is underwritten on its own merits and terms are negotiated on each risk
Business Written Impacted by OFAC, UN, EU or HMT Sanctions No
Program Profile processes description Small specialist team that has been together for 10+ years; all located in Manhattan
We use the Virtual MGA platform to record all submissions, quotes, issue policies and invoices
Claims are handled by risk carriers

KPIs and Financials

Description the stage of maturity of this program Mature – Robust historic data and program analysis available. Typically, track record of 5+ years in existing operation with well-developed systems and controls.
Currency USD
Underwriting Performance and Projections
  • 35% premium rate increase on last year on crime
  • 60% premium rate increase on FI D&O
  • 70% premium rate increase on FI PI
  • 30% Gross Loss Ratio (GLR) of which 50% is crime over last 5 years
  • 90% GLR in 2018 - our worst year
Policies and Premiums
  • 20% lead / 70% follow
  • 70% retention rate
  • 80% declinature rate
Claims and Losses
  • 25% total commissions (15% avg. broker commission)
  • 20% profit commission after reasonable deductions
Operational KPIs
  • 38 retail and wholesale brokers
  • 200 policies
  • 75% conversion rate on quote

Capacity Sought

What capacity currently supports or has historically supported this program, if any? NA
Why are you seeking capacity? NA
What authorities, limits and structures are you seeking for your program? Will this sit alongside or replace current capacity? NA
Types of agreement Binding Authority Agreement, Prior-Submit Facility
Claims Authority Sought NO
Minimal AM Best Financial Strength Rating A (Excellent)
Other Participating (Re)Insurers YES
What are the proposed commercial terms for the program? NA

Supporting Information

The following program information is available if needed

Corporate information
  • Company Overview Presentation
  • List of Company Directors
  • List of Ultimate Beneficial Owners
  • Organization Chart
  • Corporate Structure Chart
Historic performance
  • Triangles / Earned-to-Incurreds
  • Realistic Disaster Scenario Analysis
  • Risk Profiles
  • Premium and Exposure Analysis
  • Summary Underwriting Results
Business and financial plans
  • Underwriting Strategy / Approach
  • Market Analysis
  • Competitor, Customer and Pricing Research
  • Product Brochures
  • Business Plan / Renewal Pack
Underwriting, claims and operations
  • Proposed Binder / Slip Agreement(s)
Compliance and governance
  • Complaints Log
  • IDD / iPID Documentation
  • Company Risk Register
Policies and procedures
  • Anti-Money Laundering
  • Sanctions Checking
  • Anti-Bribery and Corruption

Capacity Seeker Profile

Insurance Intermediary

Legal name FI Risk Solutions Inc.
Trading name(s) NA
Principal Address
Business Trading Bases
Year of incorporation 2001
Company Registration No. 234567
Local Regulator New York Department of Financial Services
Regulatory reference No. BCDEFG
Country of Incorporation United States
Website https://www.firisksolutions.com
Credentials and Membership
Brief description of the company seeking capacity Our MGA has been around for nearly 20 years and prides itself on excellent client service.
We have specialized in FI risks and stick to what we know and who we know.

Fitness & Propriety

Have any principal personnel of the Capacity Seeker been charged with or convicted of a criminal offence other than a minor motoring offence? No
Have any principal personnel of the Capacity Seeker been a party to any legal action, or if any legal proceedings have been commenced to which your company is a party or are any such actions pending in which your company has been named as a defendant? No
Have any principal personnel been subject to any application for liquidations, receiverships, bankruptcy or similar proceedings or been subject to an administrative order? No
Have any principal personnel of the Capacity Seeker entered in to or propose to enter in to an agreement or assignment with creditors or otherwise acknowledge insolvency? No
Have any principal personnel of the Capacity Seeker been disqualified under company law? No
Have any principal personnel of the Capacity Seeker had a licence or authorisation to conduct insurance business refused, suspended, withdrawn or not renewed? No
Has the Capacity Seeker ever had a delegated authority from any insurer, including a Lloyd’s managing agent / syndicate terminated mid-term or not renewed by the insurer / Lloyd’s managing agent? No
Has the Capacity Seeker made any professional indemnity claims or notified insurers of prospective claims in the last 5 years? No

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