James Grindley - CEO Istanbul, 28 th March 2011 CertAsig and Marine Underwriting in Turkish Market.
-
Upload
opal-georgina-simmons -
Category
Documents
-
view
214 -
download
0
Transcript of James Grindley - CEO Istanbul, 28 th March 2011 CertAsig and Marine Underwriting in Turkish Market.
Who is CertAsig?
• CertAsig is a specialist, non-life insurance company licensed by the Romanian Insurance Supervisory Commission (CSA)
• Ultimate investors include: European Bank for Reconstruction & Development (EBRD) & European Investment Fund (EIF)
• Our business model is to work primarily with insurance brokers and to target corporate SME clients
• CertAsig focuses on ‘more technical’ and specialist insurance products
• Avoid chasing market share – a common strategy of ‘top 10’ insurers in Romania
• Romania is our core market but expansion to other CEE countries will be considered carefully - Turkey is already an important market for marine
• CertAsig team includes 45 insurance professionals with 6 offices – the team is dedicated to brokers and clients
• CertAsig intends to obtain a rating from a market-respected rating agency
2
Shareholder structure
• Majority owner (92%) of CertAsig is European private equity fund Royalton Capital Investors II (“RCI II”), managed by Royalton Partners
• Main investors in RCI II are:
• European Bank for Reconstruction & Development (EBRD)• European Investment Fund (EIF)• Various pension funds & other banks• CertAsig Management
3
Specialist products
Commercial & Industrial Property Insurance (All Risks with optional Business Interruption)Construction, Plant & Machinery InsuranceMotor CASCO InsuranceElectrical Equipment InsuranceContractors All Risks (CAR)Bond Insurance General Third Party Liability, Employer’s Liability Professional LiabilitiesGoods in transit / cargoMarine Insurance (ships, vessels, hull& machinery, Protection & Indemnity) General Aviation Insurance (private jets, helicopters)Medical mal-practiceEvent insuranceHealth InsurancePersonal Accident InsuranceHousehold insurance (buildings, contents & liabilities)
4
Marine Insurance is a broker-driven market
Ship-owners and managers generally use specialist brokers to obtain insurance
Marine insurance brokers earn commissions between 15% to 25% of Gross Written Premium
Leading insurers for Turkish market include:
Turkish insurers Lloyd’s Syndicates & London market Russian & European insurers
6
7
Marine products and underwriting criteria for Turkey
Products
Hull and Machinery for blue and brown water vessels
Protection and Indemnity for small and medium vessel (big oil tankers excluded)
Builder’s risks
Ship repairers’ liability
Pleasure crafts
Port authority / operator liability
Cargo / fine art
Specie and cash in transit
Cargo liability (CMR)
Marine Business
Underwriting Criteria
All vessels underwritten on a case-by-case basis; underwriting authority is never delegated
Bucharest and Constanta offices are active in selling marine business
Background / experience of operator, skipper (yacht insurance), shipyard, ship repairer, are checked before quoting
Core target business is CEE, Turkey, Black Sea-domiciled managers / operators / owners but all European managed vessels considered
Pre-entry condition survey is required for vessels older than 10 years, rendered by underwriters’ agreed surveyors
Loss record for previous 3-5 years is required and checked; tighter terms and conditions or cover refused for business with high loss record
Terms and conditions used are similar to London wordings
Terms are calculated using benchmark London market indications, facultative reinsurance terms regularly obtained for comparison
Restrictive terms offered for over age vessels , Cl. 280 FPA ucb, Cl. 284 or Cl. 289 at underwriters’ discretion or higher additional machinery deductibles imposed
Fast response to brokers, usually same day – significant differentiator in the market
English law and jurisdiction is preferred; however local jurisdiction of original assured could be accepted
CertAsig is a quoting market with at least 80% of business underwritten 100%.
Reinsurance
8Reinsurance
Key points
Security
Marine Reinsurance Programme is underwritten by:
Lloyd’s, Hannover Re, Flagstone Re & other reinsurers with rating of A- or better
Marine Hull, Protection & Indemnity, Cargo & General Aviation
Non-proportional excess of loss treaty
Capacity up to USD 10,000,000 (USD 9,750,000 xs USD 250,000)