Fiducia MGA to launch new XOL cover backed by A-rated Lloyd’s capacity

Specialty managing general agent  Fiducia MGA is to launch a new excess of loss (XOL) cover backed by a consortium of A-rated Lloyd’s capacity providers.

It will provide coverage for storage risks amid growing demands from brokers who are seeking additional protection for their clients. The product will have an indemnity limit up to £20 million above a minimum retention level of at least £5 million under the primary policy.

The cover will be available on an annual and short term policy basis. The policies will be issued separately as standalone coverage mirroring the primary insurer’s wording where applicable.

Gerry Sheehy (pictured), chief executive officer of Fiducia said the new cover is in response to calls from brokers who have found their options increasingly restricted as limits have been reduced by a number of UK markets.

“The risk appetite of many of our competitors is changing and we are seeing their participation on some of the larger limit business reducing to relatively modest lines well below £10 million,” he explained.

“This has provided the opportunity of looking at larger limit business and in order to support our brokers and clients we have been working hard over recent months to establish the Excess of Loss arrangement.

“It enables XOL risks to be considered, not only for Fiducia held or considered business but also for our brokers who are struggling to place such business where insurers have reduced their line size.”

Sheehy stated the underwriter will specifically look to provide businesses with additional cover above their primary storage policy, generally above minimum retention levels of £5 million.

“We believe the attraction will be to provide protection from major incidents that could erode the primary insurance policy,” he added. “When a primary insurer may not be able to provide the limit of indemnity required, either through lack of available capacity or appetite, an excess of loss policy can top-up a business’s cover to the level sought.

“In response to the conversations we have had with our brokers our Excess of Loss cover is designed for a wide range of businesses, from small local SMEs up to the largest multinationals.”

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