Working strategically with the producing broker over 18 months, Miller substantially increased the London market participation on the property protection for a major supplier of component parts.

The insured has a single distribution centre in California containing USD1.5bn of stock at any one time! The insured has a highly engineered location and greatly values the engineering services of its long term property carrier.

The challenge

Due to treaty restrictions the carrier could only provide limited earthquake Zone B1 capacity for what the components firm considered a reasonable premium. Time to get creative using a stock throughput policy.

Our response

Step one we placed a USD200m primary stock-only limit last year for the insured to establish a relationship with London underwriters. At renewal the limit was pushed to USD750m utilising 40 Lloyd’s syndicates and company markets.

The premium for the Miller placement was only marginally higher than the return premium achieved on their property policy for cancelling the need for the earthquake sub-limit. Effectively providing the client with “free” zone B1 earthquake coverage.

The placement showcases the power of London’s subscription market and its potential to respond in challenging circumstances.

For further information, please contact Jamie Kearney, Ruby Southgate or Oliver Lombard.