INSURANCE MARKET UPDATE
Atlantic Mutual has sold its ocean cargo and select inland marine businesses to Travelers Property Casualty Corp. The transaction includes renewal rights to the ongoing business underwritten by Atlantic Mutual as well as the related net unearned premium reserve portfolio. Atlantic Mutual's hull, luxury yacht, MGA-distributed, and pools and syndicate business were not part of the sale.
The transaction is part of Atlantic Mutual's strategy to focus on its core businesses of commercial market segments and affluent personal lines. The company's overall plan is to strengthen its balance sheet and concentrate on businesses that will be the primary drivers of its long-term success.
Atlantic Mutual's A.M. Best financial strength rating was lowered last fall from A- (Excellent) to B++ (Very Good). The company has been striving to enhance profitability by eliminating fees associated with soft capital, lowering operating expenses, and adding to income with a higher bond allocation.
Assurex forms captive
Assurex Global announced the formation of Assurex Global Reinsurance, Ltd., a captive insurer that will provide risk management services to corporate customers worldwide. The new entity will be based in Bermuda and will be managed by HSBC Insurance Solutions (Bermuda) Ltd., an Assurex Global Partner. Discover Re Managers, the alternative risk subsidiary of the St. Paul Insurance Group, will underwrite the first program to be reinsured by the company. Innovative Risk Management, Irving, Texas, will provide program management services, and claims will be managed by the Frank Gates Service Company of Columbus, Ohio.
Schinnerer offers E&O for small tech firms
Victor O. Schinnerer's errors and omissions program for technology professionals, called TechVantage, now includes a policy form that provides basic coverage for smaller firms at a lower premium and deductible. The Basic Form is a claims-made policy that covers the errors and omissions of all the employees of a firm, any joint ventures, and the firm's newly acquired subsidiaries. The form is intended for smaller technology companies that do not employ independent contractors or do not design software and therefore have little copyright infringement exposure.
The TechVantage Broad Form policy provides the E&O coverage of the Basic Form plus coverage for copyright infringement, punitive damages, and independent contractors. The TechVantage program is designed for technology firms and professionals such as custom programmers, data processors, system designers, Web designers, and Internet service providers. The policy is written on a nonadmitted basis through Indian Harbor, an A+ rated carrier, and is available in all states except Arkansas, Colorado, New Hampshire, and North Dakota.
Doctor-owned insurer formed in Florida
Healthcare Underwriters Group of Florida (HUGFL), a nonprofit reciprocal insurer owned and operated by Florida physicians, announced it is accepting applications for medical malpractice coverage from doctors throughout the state. HUGFL is a non-assessable reciprocal, so policyholders cannot be assessed to pay for losses that are greater than anticipated. If losses are less than anticipated, policyholders may receive either a dividend payment or a reduction in future premiums, subject to approval by the Florida Office of Insurance Regulation.
The HUGFL model is based on an aggressive approach to defending claims and intolerance of nuisance claims. A Subscribers Advisory Committee (physician board of directors) will review actuarial data and make recommendations for establishing annual premiums. Participating physicians also will be involved in setting underwriting and claims handling policies.
Philadelphia Insurance offers private company plan
Philadelphia Insurance Companies introduced Private Company Protection Plus, a professional liability product for private companies. The policy provides coverage for directors and officers liability, employment practices liability, and fiduciary liability. Limits are available up to $10 million for each coverage part. Policyholders can purchase equal limits of liability for each coverage part or can customize limits to meet their individual needs.
The St. Paul has management liability products for insurers
The St. Paul Companies is offering a new product to insurance companies that includes directors and officers liability, employment practices liability, fiduciary liability, and insurance company professional liability coverages. In addition to the new management liability and professional liability products, the St. Paul SelectOneSM for Insurance Companies portfolio includes a financial institution bond, kidnap and ransom, general liability, auto liability, workers compensation, property, and e-business coverage. Insureds can choose one limit of liability instead of separate limits.
The SelectOne portfolio will be offered on an admitted basis in most states. Coverage is available to property and casualty carriers, accident, health, and life carriers, stock corporations, mutual companies, reinsurers, reciprocal exchange groups, risk retention groups, captive insurers, and other risk-bearing entities.
The St. Paul debuts new product for manufacturers
The St. Paul Companies recently introduced a new product for mid-sized manufacturers, called St. Paul DesignPointSM for Manufacturers. The new product includes protection for product recall-related expenses; worldwide products coverage that protects manufacturers facing liability from claims made or lawsuits filed overseas as well as in the United States; and expanded coverages for property and general liability.
The centerpiece of St. Paul DesignPoint, according to the company, is specialized insurance coverage for specific risks faced by manufacturers, such as product recall exposure. St. Paul DesignPoint provides protection for companies facing voluntary recalls as well as recalls that are government mandated. According to The St. Paul, "recalls pose a real concern for manufacturers who may face unanticipated and costly expenses resulting from recall actions."
St. Paul DesignPoint also provides specific protection for manufacturers facing losses related to the defect, design or installation of their products. Errors and omissions (E&O) coverage can help protect manufacturers from these types of financial losses, which are often difficult to foresee and can place significant financial stress on businesses, according to The St. Paul.
TransUnion unveils new credit score
TransUnion, a global information solutions company headquartered in Chicago, is offering a new credit-based insurance score that is designed to meet carriers' needs to more accurately predict and assess risk while also addressing consumer and regulator concerns over the use of credit data in insurance underwriting. Michale Gaughan, vice president of TransUnion, said the new Insurance Risk Score "is not only extremely predictive of risk, but the variables and attributes that make up the score are publicly available so all interested parties can learn the how and why of a score's use in underwriting insurance policies." *