Business Interruption – FCA test case

For information about the outcome of the FCA’s test case into how insurance policies respond to business interruption claims as a result of Covid-19 please visit this page.

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Spark

Line of business: Property

Trade: Heat Treatment Specialist 

Not all renewals are plain sailing. Even when a client has a long relationship with our business, when they have experienced a steep rate increase the renewal period can pose a real challenge for our underwriting and customer management teams.

This was just the case earlier this year when our FTSE100 client, who having been with us since 2004, was approaching a sensitive renewal period. Following a rate increase of over 30% on their property cover in 2019, it became clear that there was a great deal of work needed to bring extra value to the relationship and strengthen our proposition. The key area we could add value was in helping them to enhance their risk engineering projects, demonstrating the expertise and benefit we could bring to the table.

With the challenge set, our sector-leading risk engineering and underwriting team embarked on delivering valuable insight; through various pieces of bespoke work on industry risk benchmarking and designing an online survey questionnaire facility.

Additionally, when their chief risk officer (CRO) asked for some assistance in reviewing their risk strategy, our own risk experts were quick to offer a valuable level of knowledge and support. The result was a 90-minute CRO workshop tailored to their hot topics, such as risk and governance in practice, approach to risk culture and assurance and emerging risks (including climate and Covid-19).

With our teams engaging on an additional strategic level, we presented the value in working with us, our expertise and strengthened the relationship at this key time.

When the renewal eventually approached, including another annual rate increase, our underwriting team delivered a range of different options to help the client in their decision process, thus avoiding the risk of a re-marketing exercise.

This example of positive collaboration and teamwork between our underwriting, risk engineering and risk functions certainly made sure we secured our 40% share property renewal of £3.4m that may otherwise have been in question.

Pexels Vlada Karpovich 4050291

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