Example 5 - UK SME Commercial Combined - Distribution Focused

Program #22713

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Program Profile

Program Title Example 5 - UK SME Commercial Combined - Distribution Focused
Program ID 22713
Capacity Seeker Brighton-Hove Insurance Brokers Ltd
Capacity Seeker Type Insurance Intermediary
Classes SME Liability SME Packages SME Property
Territories United Kingdom
Annual Premium £4,000,000
Main Products, Coverages and Limits Office Guardian, Retailer Guardian, Restaurant Guardian, Freelancer Guardian, Contractor Guardian
Coverages include standard property, EL, PL and tools cover, depending on the product
Limits and deductibles vary by cover - see attached policy documents
Policies can be purchased for days, months or a year
Contract Types Direct Insurance
US licensing requirements NA
EU licensing requirements Class 9 - Damage to Property, Class 13 - General Liability, Class 16 - Miscellaneous Financial Loss
Relevant Lloyd's Risk Codes NA
Distribution Channels NA
Brief outline of the program’s distribution Direct to customer and online comparison sites represent the majority of our premium and this is growing year-on-year.
Premium originating from retail brokers is declining every year and now accounts for c. 20% of GWP.
Brief outline of how risks are underwritten, rated and priced and policies issued Our focus is on offering competitively priced products through a variety of distribution channels including comparison sites, quote-to-bind platforms and affinity partnerships
Our underwriting platform rates risks based on question sets, issues policies and invoices brokers/clients
Business Written Impacted by OFAC, UN, EU or HMT Sanctions No
Program Profile processes description Our underwriting platform has APIs to all key distribution partners
None of our policies are handled outside of the platform
Underwriters handle system referrals in about 4% of cases, otherwise it is accept or decline
Carrier partners have full access to our platform where we jointly agree pricing

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 GBP
Underwriting Performance and Projections
  • 94% Combined Ratio over last 3 years; one fire loss accounted for 20% of total losses
  • 70% Estimated combined ratio this year due to coronavirus; but this is exceptional  
  • 25% uplift in rates over last year due to carriers pulling back from liability classes; which doesn't affect much of our book
Policies and Premiums
  • EPI: 15% Contractor Guardian / 25% Restaurant Guardian / 15% Office Guardian / 10% Freelancer Guardian  
Claims and Losses
  • C. 30 claims per annum
Operational KPIs
  • 60 brokers
  • 5 affinity partners
  • 1,100 policies (well diversified by product type, location, etc.)
  • £3,600 average policy premium 
  • 65% quote-to-bind rate

Capacity Sought

What capacity currently supports or has historically supported this program, if any? Currently supported by two Lloyd's syndicates as well as Ageas and RSA
Why are you seeking capacity? Seeking to broaden support
Some existing carriers have limited risk appetites in trades we are experiencing a lot of demand
The limited risk appetite is due to carrier conflicts with their own underwriting and other coverholders they support
What authorities, limits and structures are you seeking for your program? Will this sit alongside or replace current capacity? TBD
Types of agreement Line Slip Facility, Master Policy Agreement
Claims Authority Sought Flexible
Minimal AM Best Financial Strength Rating B++ (Good)
Other Participating (Re)Insurers YES
What are the proposed commercial terms for the program? 35% total commissions
25% maximum broker commissions
15% average commission on affinity partners
£50 admin fee
22.5% profit commission after 10% underwriter expenses

Supporting Information

The following program information is available if needed

Corporate information
  • Corporate Structure Chart
  • Organization Chart
Historic performance
  • Triangles / Earned-to-Incurreds
  • Risk Profiles
  • Program P&L
  • Summary Underwriting Results
Business and financial plans
  • Market Analysis
  • Product Brochures
  • Marketing and Distribution Plan
  • Business Plan / Renewal Pack
Underwriting, claims and operations
Agreements
  • Proposed Binder / Slip Agreement(s)
Compliance and governance
  • Company Risk Register
  • Product Conduct Risk Approvals
Policies and procedures
  • Business Continuity / Disaster Recovery
  • Data Privacy and GDPR Compliance
  • Anti-Money Laundering
  • Sanctions Checking
  • Anti-Bribery and Corruption
  • IT Security

Capacity Seeker Profile

Insurance Intermediary

Legal name Brighton-Hove Insurance Brokers Ltd
Trading name(s) NA
Principal Address
Business Trading Bases Retail Broker
Wholesale Broker
Year of incorporation 1996
Company Registration No. 567890
Local Regulator FCA
Regulatory reference No. EFGHIJ
Country of Incorporation United Kingdom
Website http://www.bhib.co.uk
Credentials and Membership Lloyd's Broker
MGAA
Brief description of the company seeking capacity BHIB is a family brokerage business that has been serving the local community for nearly 25 years.

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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No attached documents

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