Through FAConnect, clients can now access up to USD50m cover for any one risk, to be provided by reinsurer Ascot Underwriting in an exclusive agreement. Ascot was the first market to bind a risk via FAConnect, and the new facility builds on Aon Benfield’s successful partnership with the firm. This in addition to the standard market capacity that Aon Benfield can access on behalf of clients.
Elliot Richardson, Chief Executive Officer of Aon Benfield Fac, the facultative reinsurance division of Aon Benfield, said: “Aon Benfield continues to search for additional markets to expand its Chile earthquake offerings underscoring our commitment to respond to our clients needs proactively. We hope that this bold step by Ascot will encourage other market participants to consider similar offerings."
The Chile earthquake facility is highly flexible in that it is non-restrictive to Occupancy/Class of business, it allows for Primary, Excess of Loss or Proportional Cover and varying periods of risk, and there is no minimum premium requirement.
It can be utilized to reinstate cover which may have been exhausted, or indeed to provide a solution in new cover for Chilean business or for Chile exposures as part of a global program. The capacity is in line with standard London market conditions and offers fully defined Chile earthquake cover.
Andrew Brooks, Chief Executive Officer of Ascot Underwriting said: “This facility is an excellent vehicle for Ascot to respond to our customers’ needs for additional capacity. We are delighted to build on an already successful partnership with Aon Benfield and expand our offerings via FAConnect.”
The devastating Chilean earthquake which happened on February 27 this year has resulted in at least USD30bn of damage according to Aon Benfield’s Analytics division, and was responsible for more than 500 deaths. Although insurance penetration was far higher than for the preceding Haiti earthquake, there was an immediate demand for greater capacity for earthquake hazard in the region.
Mr Richardson added: “FAConnect is a highly responsive and flexible platform, and it has succeeded in enhancing capacity for the world’s key risks. This new Chilean earthquake facility is just one example of how it is delivering facultative capacity to the marketplace as and when it is required.”
FAConnect allows Aon Benfield clients to quote and bind their own facultative risk placements from any internet enabled device in less than five minutes. The platform offers a choice of global markets, and is designed for high volume, lower value transactions, where frictional costs have traditionally made it uneconomical for intermediaries to participate in the sector.
FAConnect users simply log-on and input the risk data to receive an automatic quote from their pre-negotiated market of choice. When the risk is accepted, a Fac Summary Page is generated, detailing coverage, limits, and premium information.
Facilities are monitored in real-time to track and report on underwriting rules, overall activity and production. Bordereaux, management reports and other production reports are also available, and first notices of loss can be processed through FAConnect by Aon Benfield claims teams.