Example 3 - US Property Deductible Buyback

Program #22707

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Program Profile

Program Title Example 3 - US Property Deductible Buyback
Program ID 22707
Capacity Seeker Coastal Cat Cover Inc.
Capacity Seeker Type Insurance Intermediary
Classes Personal Property Commercial Property
Territories United States
Annual Premium $7,500,000
Main Products, Coverages and Limits Available Deductible Buy-Back options for coastal and inland commercial risks
$1 million maximum limit for any one Wind/Hail catastrophic occurrence
Maximum Total Insured Value (TIV) of $15 million per risk
Minimum attachment point, $5,000 per occurrence
Larger TIVs may be reviewed upon request
Contract Types Direct Insurance
US licensing requirements Excess & Surplus (E&S)
EU licensing requirements NA
Relevant Lloyd's Risk Codes P6 - PHYS DAMAGE FOR XS LAYER PPTY IN USA EXCL BINDERS
P3 - PHYS DAMAGE FOR PRIM LAYER PPTY EXCL USA EXCL BINDERS
P4 - PHYS DAMAGE FOR FULL VALUE PPTY IN USA EXCL BINDERS
B3 - PHYS DAMAGE BINDER FOR COMMERCIAL PPTY IN USA
P2 - PHYS DAMAGE FOR PRIM LAYER PPTY IN USA EXCL BINDERS
B2 - PHYS DAMAGE BINDER FOR PRIVATE PPTY IN USA
Distribution Channels NA
Brief outline of the program’s distribution We originate business from about 250 other intermediaries in Florida and other coastal states.
Brief outline of how risks are underwritten, rated and priced and policies issued Submissions received on quote-to-bind platform, email and in-person
RMS / AiR / Eqecat / Oasis used to model exposures and minimise concentrations
All risks individually rated, significant consideration to limit concentrations
Business Written Impacted by OFAC, UN, EU or HMT Sanctions No
Program Profile processes description Standard policy forms
Monthly broker statement-of-accounts
RDS's modelled regularly

KPIs and Financials

Description the stage of maturity of this program Experienced – Limited or restricted historic data available. Typically, track record of 1-3 years in existing operation or 3+ years from another operation.
Currency USD
Underwriting Performance and Projections
  • 115% Gross Loss Ratio over last 5 years
  • 2017 and 2018 were disastrous years due to HIM losses, otherwise clean
  • 35% rate increase over last year
  • 50% retention ratio
Policies and Premiums
  • Losses are 90% CAT, 10% attritional
  • 60% of TIV within 6 miles of coast
  • 20% of TIV between 6 and 25 miles from coast
  • 20% more than 25 miles from coast
Claims and Losses
  • 22% total commission
  • 14% average broker commission; max 16%
  • 10% PC
Operational KPIs
  • 200 agents / brokers spread all over the US
  • 750 bound policies
  • 55% quote-to-bind ratio
  • 3 underwriters + underwriting assistant

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 Prior-Submit Facility
Claims Authority Sought Flexible
Minimal AM Best Financial Strength Rating A+ (Superior)
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
  • Marketing and Distribution Plan
  • Business Plan / Renewal Pack
Underwriting, claims and operations
Agreements
  • Surveyor Agreement(s)
  • Proposed Binder / Slip Agreement(s)
  • Expiring Binder / Slip Agreement(s)
  • Claims Handling / TPA Agreement(s)
Compliance and governance
  • Complaints Log
  • IDD / iPID Documentation
  • Company Risk Register
Policies and procedures
  • Business Continuity / Disaster Recovery
  • Anti-Money Laundering
  • IT Security

Capacity Seeker Profile

Insurance Intermediary

Legal name Coastal Cat Cover Inc.
Trading name(s) NA
Principal Address
Business Trading Bases
Year of incorporation 2015
Company Registration No. 345678
Local Regulator Florida Office of Insurance Regulation
Regulatory reference No. CDEFGH
Country of Incorporation United States
Website http://www.cccflorida.com
Credentials and Membership
Brief description of the company seeking capacity Our company was set up just before all of the HIM events of 2017/2018 to address a gap in the market that was not being served by the major property writers.

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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